Use the Following Information to Answer the Question(s)below

question 41

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now,$450,000 two years from now,and $650,000 three years from now.
-If the appropriate interest rate is 10%,then the NPV of this opportunity is closest to:

• A)($88,000).
• B)$88,000.
• C)$300,000.
• D)$1,300,000.

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Definitions:

Selenium

An element that exhibits photosensitive properties. Its resistance changes inversely with illumination.

Semiconductor

A material with electrical conductivity between that of a conductor and an insulator, used in most electronic devices.

Bering Strait

A narrow body of water between Russia and Alaska, serving as the maritime boundary between the Asia and North America continents.

Tenochtitlan

The capital city of the Aztec empire, founded in 1325, known for its complex social, military, and religious structures; located in what is now Mexico City.