Use the Table for the Question(s)below

question 59

Multiple Choice

Use the table for the question(s) below.
Consider the following mutually exclusive projects:
-The NPV of project A is closest to:

• A)$21.70.
• B)$24.00.
• C)$18.10.
• D)$16.90.

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Definitions:

Demand Forecast

The process of estimating the quantity of a product or service that consumers will purchase in the future.

Safety Inventory

A surplus of stock that is kept on hand to protect against unforeseen increases in demand or delays in supply.

Fill Rate

The percentage of customer or order demand that is met from available stock without backorders.

Continuous Review

A method of inventory control that constantly monitors stock levels and reorders when inventory drops to a predetermined point.