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.
Correct Answer:
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