Table 12.1 A Corporation Is Assessing the Risk of Two Capital Budgeting

question 29

Multiple Choice

Table 12.1
A corporation is assessing the risk of two capital budgeting proposals. The financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows which are given in the following table. The firm's cost of capital is 10 percent.
-The range of the annual cash inflows for Project A is ________. (See Table 12.1)

• A) $30,000
• B) $10,000
• C) $5,000
• D) $0