Net present value is being used to break the tie among four otherwise equal projects. If the interest rate is 4%, which of these anticipated four-year flows would yield the greatest net present value?

A) $10,000 in year 1; $11,000 in year 2; $12,000 in year 3; and $13,000 in year 4
B) $13,000 in year 1; $12,000 in year 2; $11,000 in year 3; and $10,000 in year 4
C) $10,000 in year 1; $10,000 in year 2; $13,000 in year 3; and $13,000 in year 4
D) $11,000 in year 1; $11,000 in year 2; $12,000 in year 3; and $12,000 in year 4

B

Business

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