Question
If a client with a 5% discount rate asks you to help decide between building A) a natural gas power plant with a life of
If a client with a 5% discount rate asks you to help decide between building A) a natural gas power plant with a life of 70 years and a NPV of $70 million or B) an offshore wind-driven power generator with a life of 35 years and NPV of $35 million. You should:
Group of answer choices
a. pick alternative A because it has a $35 million higher NPV.
b. use the rollover or annuity factor method to compare the two.
c. decline the job because there is not enough information.
d. say it's a tossup because the value of B would also be $70 million.
Time-declining discounting helps increase the influence of future values.
a. true
b. false
Spenders : guardians ::
Group of answer choices
a. county government : state government.
b. developers : legislators.
c. legislators : developers.
d. legislators : state budget offices.
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