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Rickos Rickos
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6 years ago
The present value of the total costs over a five year period for Project April is $50,000. The present value of total costs over the same 5 year period for Project October is $40,000. The company uses a discount rate of 9%. There are no positive cash flows for these projects, but one or the other is required to comply with government regulations. Which project should be chosen and why?
A) April because it has a higher net present value (NPV).
B) Both projects because they will add value to the company.
C) Neither project because the NPVs are negative.
D) October because it has a lower net present cost.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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vanrheevanrhee
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Rickos Author
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6 years ago
This calls for a celebration Person Raising Both Hands in Celebration
Tabitha.davis
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Yesterday
Smart ... Thanks!
Chaldoren
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2 hours ago
Good timing, thanks!
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