Table 12.1 A Corporation Is Assessing the Risk of Two Capital Budgeting

Multiple Choice

Table 12.1
A corporation is assessing the risk of two capital budgeting proposals. The financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows which are given in the following table. The firm's cost of capital is 10 percent.
-If the projects have five-year lives, the range of the net present value for Project B is approximately ________. (See Table 12.1)

A) $80,563
B) $201,000
C) $255,444
D) $303,263