Question

U. LASI TUWS Must te positive Lave you 16. Which of the following would you feel safest in accepting? Assume MARR to be 12% for each proje (Hint: Consider IRR/PW graph) a. "A" has a small but negative net present worth. "B" has a positive net present worth when discounted at 10%. c. "C's" cost of capital exceeds its rate of return. d. "D" has a zero net present worth when discounted at 14%.

Answer 1

ANSWER:

The correct answer is option d that is "d " has a zero net present worth when discounted at 14% as at 12% , the net present worth will be positive as 12% is less then 14%