Use the Table for the Question(s)below

question 26

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
• E)$12.06

---

Definitions:

Capacity Increment

The addition or increase in a system's or facility's ability to produce goods or services.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Drum

In production and project management, often refers to the constraint or bottleneck resource that dictates the pace at which a process can run.

Buffer

A zone of protection or safety margin that reduces the risk of fluctuations or uncertainties affecting the primary system or process.