A Project Requires an Investment of $900 Today

question 44

Multiple Choice

A project requires an investment of $900 today. It has sales of $1,100 per year forever. Costs will be $600 the first year and increase by 20% per year. Ignoring taxes calculate the NPV of the project at 12% discount rate.

• A) $65.00
• B) $57.51
• C) $100.00
• D) Cannot be calculated as g > r

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Form of promotion in which marketers pay fees to have their products showcased in various media, ranging from newspapers and magazines to original online television and movies.

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