Suppose You Have an Opportunity to Invest in a Project,which

question 61

Multiple Choice

Suppose you have an opportunity to invest in a project,which is expected to generate $6,800 in year 1,$7,200 in year 2,and $7,500 in year 3.The appropriate risk-adjusted discount rate for the project is 10.5 percent.What is project's initial investment when the project's NPV is $2,609.25? Assume the tax rate is zero.

• A) $15,000.00
• B) $17,609.25
• C) $20,218.50
• D) $21,500.00

---

Definitions:

Popular Vote

The total number or percentage of votes cast by the electorate directly in an election, as opposed to those cast by representatives or electors.

Legislative Houses

Bodies within a legislative branch of government, typically bicameral, comprising two separate assemblies or chambers.

Continental Army

The primary military force of the American colonies during the American Revolutionary War, established in 1775.

State Support

Financial or policy assistance provided by government to individuals, organizations, or industries to encourage growth, stability, or development.