At a Discount Rate of 6 Percent, What Is the Net

question 24

Multiple Choice

At a discount rate of 6 percent, what is the net present value of an investment project expected to yield $1,000 per year (to be received at year end) for the next three years?

• A) $3,000
• B) $2,829
• C) $2,673
• D) There is insufficient information to determine whether the project should be undertaken.

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Definitions:

RNA Viruses

Viruses that have RNA (ribonucleic acid) as their genetic material and rely on a host cell for replication.

DNA Polymerase

An enzyme that synthesizes DNA molecules from their nucleotide building blocks, essential for DNA replication.

Icosahedron

A geometric shape with 20 faces, each of which is an equilateral triangle.

Polyhedral

A shape that has many faces, typically referring to solids in geometry such as cubes or pyramids.