At Current Prices and a 13 Percent Cost of Capital

question 28

Multiple Choice

At current prices and a 13 percent cost of capital, a project's NPV is $100,000.By what minimum amount must the initial cost of the project decrease (revenues will be unchanged) before you would prefer to wait two years before investing?

• A)$21,685
• B)$26,000
• C)$27,690
• D)$29,380

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