ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm
A) should undertake the investment.
B) should forgo the investment.
C) is just indifferent between undertaking the investment and not.
D) indeterminate from the given information
Correct Answer:
Verified
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