At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than

Question

Quizplus · Accepted Answer

The present value of the cash flows at a 6% interest rate for three years is calculated as $943.40 for the first year, $890.00 for the second year, and $839.62 for the third year, totaling approximately $2,673.

At an Interest Rate of 6 Percent, If an Investment