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Suppose You Make $1,000 Investment Today That You Believe Will

Question 17

Multiple Choice

Suppose you make $1,000 investment today that you believe will have a one-time return of $2,500 in 5 years.If the interest rate is 12%,will you have a profitable investment?


A) Yes, because the NPV is positive
B) Yes, because the NPV is negative
C) No, because the NPV is positive
D) No, because the NPV is negative

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