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A Certain Investment That Costs $10,000 Today Promises to Pay

Question 3

Multiple Choice

A certain investment that costs $10,000 today promises to pay you $10,500 in five years.This investment ________.


A) is unambiguously a good investment
B) is unambiguously a bad investment
C) may be a good investment if the rate of return you can earn an alternative investments is very low
D) may be a good investment if the rate of return you can earn on alternative investments is very high

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