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You Are Offered an Investment Opportunity in Which You Will

Question 33

Multiple Choice

You are offered an investment opportunity in which you will receive $23,750 today in exchange for paying $25,000 in one year.Suppose the risk-free interest rate is 6% per year.Should you take this project,and what is the closest estimate of the NPV?


A) Yes; NPV = $165
B) No; NPV = $165
C) Yes; NPV = -$165
D) No; NPV = -$165

Correct Answer:

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