Use the Table for the Question(s)below

question 91

Multiple Choice

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

-The net present value (NPV) for project alpha is closest to:

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

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Definitions:

Interest Rate

Interest rate is the percentage charged by a lender to a borrower for the use of assets, adjusting for the cost of credit or the return on investment.

Lump Sum

A single payment made at a particular time, as opposed to several smaller installments.

Future Value

The value of an investment at a specified date in the future that accounts for a specified rate of interest or rate of return.

Interest Rate

The amount charged by a lender to a borrower for the use of assets expressed as a percentage of the principal.