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18. Net present value is being used to break the tie among four otherwise equal projects. If the interest rate is 4%, which o

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Answer #1

Answer: B,

Explanation: Using Excel for formulas

A

Year 1 Year 2 Year 3 Year 4
10000 11000 12000 13000
NPV= $2,556.80 =NPV(interest rate, values of cash inflows)

B

Year 1 Year 2 Year 3 Year 4
13000 12000 11000 10000
NPV= $3,184.00 =NPV(interest rate, values of cash inflows)

C

Year 1 Year 2 Year 3 Year 4
10000 10000 13000 13000
NPV= $2,524.80 NPV(interest rate, values of cash inflows)

D

Year 1 Year 2 Year 3 Year 4
11000 11000 12000 12000
NPV= $2,755.20 NPV(interest rate, values of cash inflows)
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