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A Project Costs $30,000 and Is Expected to Return $36,000

Question 52

Multiple Choice

A project costs $30,000 and is expected to return $36,000 next year. One-year taxable bonds of similar risk are yielding 10% while similar-risk munis are yielding 8%. Your marginal tax rate
Is 30%. What is the NPV of this project? Round your answer to the nearest dollar


A) $1,091
B) $2,386
C) $1,963
D) $1,667

Correct Answer:

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