Multiple Choice
A firm is considering three projects. Each costs $1 million now. Project A will yield $400,000 a year for three years, beginning one year from now. Project B will yield $1.25 million three years from now, and Project C will yield $600,000 for two years, beginning two years from now. If the interest rate is 8 percent, which of these projects should the firm undertake?
A) Project A
B) Project B
C) Project C
D) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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