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The Spicket Business Has the Following Three Investment Proposals Available

Question 44

Multiple Choice

The Spicket Business has the following three investment proposals available:
 initial investment  net present  Proposal  Required  Value  A $20000$5000 B 300008000 C 5000014000\begin{array}{ccc}& \text { initial investment } & \text { net present } \\\text { Proposal } & \text { Required } & \text { Value } \\\hline \text { A } & \$ 20000 & \$ 5000 \\\text { B } & 30000 & 8000 \\\text { C } & 50000 & 14000\end{array} Assuming Spicket has $50 000 cash available and uses the maximum net present value method to evaluate investments, Spicket should select:


A) proposal A.
B) proposal B.
C) proposal C.
D) any of the three proposals, as all have positive net present values.

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