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The Present Value of the Total Costs Over a Five

question 97

Multiple Choice

The present value of the total costs over a five year period for Project April is $50,000.The net present value of total costs over a 4 year period for Project October is $40,000.The company uses a discount rate of 9%.Which project should it choose and why?

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Definitions:

Aggregate Planning

A process in operations management used to develop, analyze, and maintain a preliminary, approximate schedule of the overall operations of an organization.

Measuring Sales

The process of quantifying the revenue generated from goods or services sold by a business over a specified period.

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