Use the Table for the Question(s)below

question 118

Multiple Choice

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

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

• A)12.6
• B)23.3
• C)12.0
• D)15.0

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Definitions:

Estimated Activity

An approximation of the amount of work or level of effort needed for a particular task or project.

Activity at Capacity

The level of operational activity that a company can achieve using its current resources without incurring additional costs.

Machine-Hours

A measure of the amount of time machines are used in the production process, often related to the allocation of manufacturing overhead.

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services, used as a basis for assigning labor costs to products.