If an investment project costing $2,700 was expected to yield $1,000 (to be received at year end) for each of the next three years, a profit-maximizing entrepreneur would

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The project yields $3,000 over three years, exceeding the initial cost of $2,700. The entrepreneur would undertake the project if the interest rate is low enough (5% or less) to ensure the present value of future cash flows exceeds the initial investment.

If an Investment Project Costing $2,700 Was Expected to Yield