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The Net Present Value of the Proposed Investment, Discounted at an Annual

Question 117

Multiple Choice

The net present value of the proposed investment, discounted at an annual rate of 15% and rounded to the nearest dollar, is (tables show that using a discount rate of 15%, the present value of $1 due in five years is 0.497, and the present value of a five year $1 annuity is 3.352) :


A) $528.
B) $1,128.50.
C) $(1,405) .
D) Some other amount.

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