Multiple Choice
Zellars,Inc.is considering two mutually exclusive projects,A and B.Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.Project B costs $120,000 and is expected to generate $64,000 in year one,$67,000 in year two,$56,000 in year three,and $45,000 in year four.Zellars,Inc.'s required rate of return for these projects is 10%.The net present value for Project A is
A) $12,358.
B) $16,947.
C) $19,458.
D) $26,074.
Correct Answer:

Verified
Correct Answer:
Verified
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