Ms Card Bought an Investment That Will Generate the Following

question 81

Multiple Choice

Ms. Card bought an investment that will generate the following cash flows over a three-year period. If Ms. Card's marginal tax rate over the three year period is 40% and she uses a 6% discount rate, compute the NPV of the transaction.

• A) $94,129
• B) $84,964
• C) $62,373
• D) None of the above

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Definitions:

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