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If the Interest Rate Was 5 Percent and an Investment

Question 47

Multiple Choice

If the interest rate was 5 percent and an investment project was expected to yield net revenue of $3,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the investment only as long as it cost less than


A) $7,461.
B) $8,170.
C) $8,652.
D) $9,000.

Correct Answer:

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