At an Interest Rate of 6 Percent, If an Investment

question 14

Multiple Choice

At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than

• A) $1,000.
• B) $2,577.
• C) $2,673.
• D) $3,000.

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