You Have Been Offered the Following Investment Opportunity: If You

question 72

Multiple Choice

You have been offered the following investment opportunity: if you pay $2500 today,you will receive $1000 at the end of each of the next three years.Assuming that you could otherwise earn 10% per year on your money,the net present value (NPV) for this opportunity is closest to:

• A)$12
• B)$18
• C)-$13
• D)$500
• E)-$18

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Definitions:

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Measures taken to reduce, control, or eliminate pollution from various sources to improve environmental health.

Diminishing Returns

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Free Ride

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