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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

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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. 37) 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. 1 38) If the appropriate interest rate is 10%, then Nielson Motors should: A) invest in this opportunity since the NPV is positive. B) not invest in this opportunity since the NPV is positive. C) invest in this opportunity since the NPV is negative. D) not invest in this opportunity since the NPV is negative. 39) If the appropriate interest rate is 15%, then Nielson Motors should: A) invest in this opportunity since the NPV is positive. B) not invest in this opportunity since the NPV is positive. C) invest in this opportunity since the NPV is negative. D) not invest in this opportunity since the NPV is negative. 40) Which of the following statements is FALSE? A) The process of moving a value or cash flow forward in time is known as compounding. B) The effect of earning interest on interest is known as compound interest. C) It is only possible to compare or combine values at the same point in time. D) A dollar in the future is worth more than a dollar today

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