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Consider a Project That Would Change the Way Your Company

Question 52

Multiple Choice

Consider a project that would change the way your company is doing business.Investing $100,000 would save your company $10,000 a year forever.Calculate the NPV of this project if the risk-adjusted rate is 10%.


A) $10,000
B) $100,000
C) $0
D) $ −90,000

Correct Answer:

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