ABC Corp Is Considering an Investment Project That Costs $500 Today

Multiple Choice

ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm

A) should undertake the investment.
B) should forgo the investment.
C) is just indifferent between undertaking the investment and not.
D) indeterminate from the given information