Question
If all of the projects below require the same initial cost, have the same risk and no salvage value, which of them has the HIGHEST
If all of the projects below require the same initial cost, have the same risk and no salvage value, which of them has the HIGHEST net present value (NPV)? Cash flows are as shown on the following time line.
|
| Cash Flows | |||
|
| Year 1 | Year 2 | Year 3 | Year 4 |
| Project A. | $1500 | $1500 | $1500 | $1500 |
| Project B. | $3000 | $0 | $3000 | $0 |
| Project C. | $6000 | $0 | $0 | $0 |
| Project D. | $0 | $3000 | $0 | $3000 |
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
5th Edition
0078110289, 978-0078110283
