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Alden Pharma is looking for additional revenue streams. The company has two investment options: Option A: Invest $ 1 0 0 , 0 0 0
Alden Pharma is looking for additional revenue streams. The company has two investment options:
Option A: Invest $ in a project that generates an expected return of $ per year for years.
Option B: Invest $ in a different project that generates an expected return of $ per year for years If Alden's opportunity cost of capital per annum, which option provides the higher net present value NPV in terms of expected returns?
C Option A
W Neither option has a positive NPV E None of the choices
D Option B
The NPV for both options is zero.
U Both options have the same NPV
S It is impossible to determine without additional information.
Referring to item what is the net present value of the expected returns for Options A and respectively?
P $;$
E $;$
None of the choices
H $;$
N $;$
O $;$
I. $;$
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