Use the information in Scenario 4.5. What action, if any, should the King Company take?
A. Do nothing—neither alternative provides a positive net present value after five years.
B. Select Alternative #1.
C. Select alternative #2.
D. Either alternative may be selected, since the positive net present values are the same after five years.
Answer:B
Use the information in Scenario 4.5. What action, if any, should the King Company take?
A. Do nothing—neither alternative provides a positive net present value after five years. B. Select Alternative #1. C. Select alternative #2. D. Either alternative may be selected, since the positive net present values are the same after five years.