Question
Problem 1 (10 points) You are offered an investment opportunity in which you will receive $25,000 in one year in exchange for paying $23,750 today.
Problem 1 (10 points) You are offered an investment opportunity in which you will receive $25,000 in one year in exchange for paying $23,750 today. Suppose the risk-free rate is 6% per year. Should you take this project? The NPV for this project is closest to:
(1) Yes; NPV = $165
(2) No; NPV = $165
(3) Yes; NPV = -$165
(4) No; NPV = -$165
Explain your answer.
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Restoring Demand In The World Economy Trade Finance And Technology
Authors: Joseph Halevi, Jean-Marc Fontaine
1st Edition
1858984580, 9781858984582
