You Are Offered an Investment Opportunity in Which You Will

question 2

Multiple Choice

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

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

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Definitions:

Crisis Management

The method through which an entity handles a sudden and unforeseen incident that poses a risk to the entity or its stakeholders.

Brand Development

The process of creating and strengthening a brand's identity, market position, and connection with audiences.

Message Delivery

The process of successfully transmitting a message from sender to receiver through various channels and ensuring it is received as intended.

Sustainable Business

A company that operates in a manner that minimizes negative environmental impact and encourages positive social contributions.