Using the Total Project Approach to Investment Decisions,the Following Information

question 35

Multiple Choice

Using the total project approach to investment decisions,the following information is available:
Net present value of Alternative A is $12,000
Net present value of Alternative B is $14,000
If the differential approach is used to evaluate Alternatives A and B,what is the numerical result obtained?

• A) $0
• B) $2,000 advantage to Alternative B
• C) $12,000
• D) $14,000

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Definitions:

Savanna Grassland

A ecosystem characterized by a mix of grasses and scattered trees, found in tropical and subtropical regions with seasonal rainfall.

Littoral Zone

Shore zone between high-tide mark and low-tide mark; also, shallow water of a lake where light penetrates to the bottom.

Aquatic Plants

Plants that grow in or near water and are adapted to living in wet environments.

Lake Ecosystem

A freshwater system that supports a variety of organisms, defined by its standing water, ecological interactions, and aquatic life.