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On January 1 , Year One, a company spends $ 6 0 , 0 0 0 on an investment that will return $ 2 0
On January Year One, a company spends $ on an investment that will return $ on each December of Years One, Two, and Three as well as an additional $ on December Year Three. The company has a desired rate of return of percent per year. The present value of $ paid in three periods at a percent rate of return is The present value of an ordinary annuity of $ paid over three periods at a percent rate of return is Which of the following statements is true?
a The investment has a positive net present value of $
b The investment has a positive net present value of $
c The investment has a positive net present value of $
d he investment has a positive net present value of $
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