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Kresta Can Invest in a Scheme Which Will Pay $10,000

Question 79

Multiple Choice

Kresta can invest in a scheme which will pay $10,000 at the end of each of the next four years.She must make an investment at the start of the first year of $32,000.Should she make this investment,given that the interest rate is 7%?


A) Yes,because the net present value (NPV) is negative.
B) Yes,because the net present value (NPV) is positive.
C) No,because the net present value (NPV) is negative
D) No because the net present value (NPV) is positive.
E) No,because the net present value (NPV) is zero.

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