A Company Is Appraising Two Projects

A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows. 11ec37eb_8baf_5b87_97b9_2559fdf87bff__00 Based on the above information, which of the following statements is correct?

A) An annuity could be used to calculate the net present value of the projects.
B) The annuity factor for project A would be lower than the annuity factor for the project B.
C) A perpetuity could be used to calculate the net present value of the projects.
D) The annuity factor for project A would double the annuity factor for project B.

Correct Answer:

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