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Example 12 -Refer to Example 12

Question 11

Multiple Choice

Example 12.1
Use the information below to answer the following questions.
The Schroeder Business has identified the investment proposals shown below as acceptable.
\begin{array} { c c c } \begin{array} { c } \text { Investment } \\\text { Proposal }\end{array} & \begin{array} { c } \text { Required } \\\text { Investment }\end{array} & \begin{array} { c } \text { Net Present } \\\text { Value }\end{array} \\\hline\text { A } & \$ 20000 & \$ 10000\\\text { B } & 50000 & 16000 \\\text { C } & 30000 & 8000 \\\text { D } & 30000 &7000 \\\\text { E } & 20000 &11000 \\end{array}
-Refer to Example 12.1. Assuming the proposals are mutually exclusive, which proposal should be chosen?


A) Proposal A
B) Proposal B
C) Proposal C
D) Proposal E.

Correct Answer:

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