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Timothy is considering an investment of $10,000. This investment is supposedly going to provide him with cash inflows of $2,500 in the first year and
Timothy is considering an investment of $10,000. This investment is supposedly going to provide him with cash inflows of $2,500 in the first year and $6,000 a year for the following 2 years. At a discount rate of zero percent this investment has a net present value (NPV) of _____, but at the relevant discount rate of 18 percent the project's NPV is: a. $4,500; $62.03. b. -$1,500; $62.03. c. $4,500; $79.54. d. -$1,500; $79.54. e. $6,000; $98.48.
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