31. 
(Table: Present Value of Projects A, B, C, and D) Examine the table Present Value of Projects A, B, C, and D. Given the information, if the annual interest rate were 10%, which project should be chosen? 


A) 
D 

B) 
C 

C) 
A 

D) 
B 
This is a Finance question and should have been posted under Finance and not Economics. Please make sure you post your question under correct subject lest it should be rejected in which case you'll have to repost the question and you'll end up wasting time.
Present value = Sum of discounted cashflows = Cashflow in year 0 (now ) + Cashflow in year n/ (1+ r%)^n
= Cashflow in year 0 + Cashflow in year 1/ (1+ 10%)^1
These present values can be calculated for each of the projects and the project with highest present value must be chosen if initial investment is the same for all projects.
Present values can be calculate...
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