If the interest rate is 8 percent and an investment undertaken and paid for today is expected to yield $3,000 per year (to be received at year end) for each of the next three years, a profit-maximizing decision maker would undertake the investment only as long as the cost remained less than approximately
A) $5,350.
B) $7,731.
C) $8,109.
D) $9,000.
Correct Answer:
Verified
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