You Are Offered an Investment Opportunity in Which You Will

question 43

Multiple Choice

You are offered an investment opportunity in which you will receive $25,000 in one year in exchange for paying $23,750 today.Suppose the risk-free interest rate is 6% per year.Should you take this project? The NPV for this project is closest to:

• A)Yes;NPV = $165
• B)No;NPV = $165
• C)Yes;NPV = -$165
• D)No;NPV = -$165

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Definitions:

Deist Conception

The belief in a God who created the universe but does not intervene in it or alter its laws with supernatural events.

Voltaire

A French Enlightenment writer, historian, and philosopher famous for his wit, his criticism of Christianity, and his advocacy for freedom of speech, religion, and separation of church and state.

Book Of Job

An ancient text from the Hebrew Bible that explores themes of justice, suffering, and the righteousness of God through the experiences of a man named Job.

Terrible Sufferings

Experiences of extreme pain, distress, or hardship.