Refer to the Following Two Tables

question 22

Multiple Choice

refer to the following two tables.

-Using the two tables above and a 12 percent discount rate, what would be the present value of the projects net benefits (that is, benefits minus costs) ?

• A)$43.5 million
• B)$301.8 million
• C)$100 million
• D)$400 million
• E)$71.2 million

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Definitions:

Net Disbursement Float

The time difference between when a check is issued by a company and when the funds are actually withdrawn from the company's bank account.

Outstanding Checks

Checks that have been written and recorded in the account ledger but not yet cashed or cleared by the bank.

Availability Delay

The delay between the time a deposit is made into a bank account and the time those funds become accessible.

Mailing Time

The duration between when a mailpiece is sent and when it is received.