Use the Table for the Question(s)below

question 84

Multiple Choice

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

-The net present value (NPV) of project A is closest to:

• A)12.0
• B)12.6
• C)15.0
• D)42.9

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Definitions:

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Outdoor Pets

Domestic animals such as dogs and cats that are suitable for living outside in a safe environment.

Leash Law

Regulations requiring pet owners to keep their pets on a leash in public areas to prevent accidents and ensure safety.