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Two alternatives A and B have the following cash flows.
Year : 0 1 2 3 4
Option A : −Rs. 1,500, +Rs. 600, +Rs. 600, +Rs. 600, +Rs. 600
Option B : −Rs. 2,700, +Rs. 100, +Rs. 100, +Rs. 100, +Rs. 100
At a 6% interest rate, which alternative should be selected?
B because the NPW of A is negative
A because the NPW of A is greater than the NPW of B
A because the NPW of B is greater than the NPW of A
B because the NPW of B is greater than the NPW of A