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Ryanteck Ryanteck
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6 years ago
ABC Corp. is considering an investment project that costs $500 today.  It expects the project will yield income of $200 at the end of years 1, 2, and 3.  If the interest rate is 10%, the firm
A) is just indifferent between undertaking the investment and not.
B) should forgo the investment.
C) should undertake the investment.
D) indeterminate from the given information.
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goldlilysgoldlilys
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6 years ago
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Ryanteck Author
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Smart ... Thanks!
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