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Athens Corporation has the opportunity to invest $ 1 0 , 0 0 0 in a subsidiary business venture that will generate a one -
Athens Corporation has the opportunity to invest $ in a subsidiary business venture that will generate a onetime $ cash payment in years.
Using the net present value method and assuming the market interest rate is should Athens invest in this venture?
A
No Athens should not invest in the business venture. The net present value of the $ cash payment is $ which is less than $ the investment they would make.
B
Yes, Athens should invest in the business venture. The net present value of the $ cash payment is $ which is greater than $ the investment they would make.
C
Yes, Athens should invest in the business venture. The net present value of the $ cash payment is $ which is greater than $ the investment they would make.
D
No Athens should not invest in the business venture. The net present value of the $ cash payment is $ which is less than $ the investment they would make.
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