Tackle the Test: Free-Response Questions

  1. Question

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    Rubric for FRQ 1 (5 points)

    1 point: Project A net present value: $1,000

    1 point: Project B net present value: –$100 + ($1,200/1.05) = $1,042.86

    1 point: Project C net present value: $1,200 – ($200/1.05) = $1,009.52

    1 point: Choose project B.

    1 point: It has the highest net present value.

  2. Question

    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