Table 11.11 Yong Importers,an Asian Import Company,is Evaluating Two Mutually Exclusive Projects,A

question 167

Multiple Choice

Table 11.11
Yong Importers,an Asian import company,is evaluating two mutually exclusive projects,A and B.The relevant cash flows for each project are given in the table below.The cost of capital for use in evaluating each of these equally risky projects is 10 percent.
-The annualized NPV of Project B is ________.(See Table 11.11)

• A)$11,673
• B)$12,947
• C)$38,227
• D)$21,828

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Definitions:

Discount

A reduction applied to the usual cost of goods or services.

Markup Rate

The percentage added to the cost price of goods to cover overhead and profit.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Rectangular Room

A prism-shaped space with four walls at right angles to each other, typically used to describe a standard room shape.