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Kramer's Frozen Sandwiches Is Thinking of Building a New Warehouse

Question 129

Multiple Choice

Kramer's Frozen Sandwiches is thinking of building a new warehouse.They believe that this will given them $50,000 of additional revenue at the end of one year,$60,000 additional revenue at the end of two years,and $70,000 in additional revenue at the end of three years.If the interest rate is 5 percent,they would be willing to pay


A) $140,000, but not $150,000.
B) $150,000, but not $160,000.
C) $160,000, but not $170,000.
D) $170,000, but not $180,000.

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