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Mr. Dell has $100 income this year and zero income next year. The expected return from investing in the stock market is 10 percent a
Mr. Dell has $100 income this year and zero income next year. The expected return from investing in the stock market is 10 percent a year. Mr. Dell also has an investment opportunityhaving the same risk as the market in which he can invest $50 this year and receive $100 after two years. Suppose Mr. Dell consumes $50 this year and invests in the project. What is the NPV of the investment opportunity?
Group of answer choices
$53.0
$42.5
$27.6
$32.6
$22.7
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