Maple Cloud Services Inc. is considering the development a brand new type of cloud computing server that requires $85,000 to be spent at the end of each of the next six years. Revenues of $100,000 per year for five years start at the end of the of the second year. Should Maple pursue this opportunity?
A) No, because the Maple will be $21,960 worse off after at the end of the investment period.
B) No, because the Maple will be $10,000 worse off after at the end of the investment period.
C) No, because the Maple will only break even by the end of the investment period.
D) Yes, because the Maple will be $4,870 better off after at the end of the investment period.
E) Yes, because the Maple will be $75,000 better off after at the end of the investment period.
Correct Answer:
Verified
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