Consider the Following Two Projects

question 122

Multiple Choice

Consider the following two projects:

The net present value (NPV) of project B is closest to ________.

• A) 9.3
• B) 10.2
• C) 11.6
• D) 23.2

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Definitions:

Total Percentage Return

A metric that measures the total return on an investment, including both capital gains and dividends or interest, as a percentage of the initial investment.

Dividends

Disbursements from a company to its shareholders, customarily extracted from the company's net income.

Purchase Price

The amount paid to buy an asset or service, which can include the acquisition of goods, services, or property.

Selling Price

The amount of money for which a product or service is offered for sale to customers.