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You Are Offered an Investment Opportunity in Which You Will

Question 87

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? The NPV for this project is closest to:


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

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