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At Current Prices and a 13 Percent Cost of Capital

Question 28

Multiple Choice

At current prices and a 13 percent cost of capital, a project's NPV is $100,000.By what minimum amount must the initial cost of the project decrease (revenues will be unchanged) before you would prefer to wait two years before investing?


A) $21,685
B) $26,000
C) $27,690
D) $29,380

Correct Answer:

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