Question: Would you accept a project which is expected to pay $10,000 a year for seven years if the initial investment is $40,000 and your required

Would you accept a project which is expected to pay $10,000 a year for seven years if the initial investment is $40,000 and your required return is 15%?

a. Yes; the NPV is $4,238

b. Yes; the NPV is $1,446

c. Yes; the NPV is $1,604

d. No; the NPV is -$2,783

e. No; the NPV is -$1,369

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