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Assume an investment is priced at $500,000 and has the following income stream: Year Cash Flow 1 -$100,000 2 $200,000 3 $300,000 4 $300,000 Would
Assume an investment is priced at $500,000 and has the following income stream:
Year Cash Flow
1 -$100,000
2 $200,000
3 $300,000
4 $300,000
Would an investor with a required rate of return of 13 percent be wise to invest at a price of $500,000
A. No, because the investment has a net present value of -$-53,279
B. Yes, because the investment has a net present value of $39,956
C. Yes, because the investment has a net present value of $69,662
D. No, because the investment has a net present value of -$39,956
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