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Suppose a Program Costs $100 with No Benefits in Year

Question 2

Multiple Choice

Suppose a program costs $100 with no benefits in year 0 and has net benefits of $40 for the next three years.With a discount rate of 6%, what is the program's present value?


A) $6.92
B) $20
C) $27.20
D) $13.21

Correct Answer:

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