Multiple Choice
A firm estimates that it will receive cash flows from a new product of $1,000 in Year 1, $800 in Year 2, and $700 in Year 3. If a discount rate of 9% is assumed, into what range below will the NPV be?
A) Less than $2500
B) Between $2500 and $2800
C) Between $2800 and $3100
D) More than $3100
Correct Answer:
Verified
Correct Answer:
Verified
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