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Question

Under treatment A, costs are 100 in year 1 and 200 in year 2.  Treatment B costs 200 in year 1 and 100 in year

2.  Which of the following is true?

            A.  for any positive discount rate, the net present value of costs is less  

for treatment A than for B.

B. for any positive discount rate, the net present value of costs is less 

for treatment B than for treatment A.

C. for any positive discount rate, the net present value of costs for A and 

B is the same

D. none of the above

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