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Smart Solutions Inc

Question 51

Multiple Choice

Smart Solutions Inc. is evaluating a capital project for expansion. The project costs $10,000, and it is expected to generate $5,000 per year for three years. If the firm's required rate of return is 10 percent, what is the project's terminal value?


A) $15,000
B) $16,550
C) $11,550
D) $14,050
E) $12,500

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