Use the Table for the Question(s) Below

question 16

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-The NPV for project beta is closest to:

• A) $24.01
• B) $16.92
• C) $20.96
• D) $14.41

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Definitions:

Operating Cash Inflows

The money received by a company from its normal business operations.

Incremental Cost Approach

A decision-making process that focuses on the costs that will change if an action is taken, compared to if it is not taken.

Discount Rate

The interest rate used to discount future cash flows to their present value in capital budgeting projects.

Salvage Value

The projected amount an asset is expected to yield upon being sold at the conclusion of its usable lifespan.