Multiple Choice
A project requires an investment of $900 today. It has sales of $1,100 per year forever. Costs will be $600 the first year and increase by 20% per year. Ignoring taxes calculate the NPV of the project at 12% discount rate.
A) $65.00
B) $57.51
C) $100.00
D) Cannot be calculated as g > r
Correct Answer:
Verified
Correct Answer:
Verified
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