You have been offered to invest in a project that requires you to pay $1,000 up...
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You have been offered to invest in a project that requires you to pay $1,000 up front and another $380 in a year. This project will give you $400 a year later plus another $520 and $680 in two and three years respectively (after that the project does not worth anything). You WILL (will or will not) invest in the project above if the current interest rate is 5% because the project has a net present value of $78.11 (enter a dollar amount here). You have been offered to invest in a project that requires you to pay $1,000 up front and another $380 in a year. This project will give you $400 a year later plus another $520 and $680 in two and three years respectively (after that the project does not worth anything). You WILL (will or will not) invest in the project above if the current interest rate is 5% because the project has a net present value of $78.11 (enter a dollar amount here).
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Answer rating: 100% (QA)
Initial Investment 1000 Investment at year 1 380 Revenue ... View the full answer
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
Posted Date:
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