Homework Answers
Answer:
Correct answer is:
B. Investment B
Explanation:
NPV A = 9.4 / (1 + 9%) - 8 = $0.623853 million
NPV B = 14.3 / (1 + 9%) - 12.2 = $0.919266 million
NPV C = 7.05 / (1 +9%) - 6 = $0.467890 million
NPV D = 2.59 / (1+ 9%) - 2.2 = $0.176147 million
NPV of investment B is highest.
Option B is correct and other options are incorrect.
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which is the best investment?
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