Zellars,Inc

question 62

Multiple Choice

Zellars,Inc.is considering two mutually exclusive projects,A and B.Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.Project B costs $120,000 and is expected to generate $64,000 in year one,$67,000 in year two,$56,000 in year three,and $45,000 in year four.Zellars,Inc.'s required rate of return for these projects is 10%.The net present value for Project B is

• A) $58,097.
• B) $66,363.
• C) $74,538.
• D) $112,000.

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Definitions:

Sale of Goods Act

Legislation regulating the sale and purchase of goods, ensuring fairness in transactions and the rights of buyers and sellers.

Fair and Even

An equitable approach that aims for fairness and balance in decision-making or distribution.

Common Law Recourse

Legal remedies or actions available to individuals under the judicial system based on customs and judicial precedent, rather than on statutes.

Faulty or Dangerous Product

A product that fails to meet safety standards, posing potential risks to users or the environment.