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Use the following information to answer the question(s) below. Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide
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Use the following information to answer the question(s) below.
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.
If the appropriate interest rate is 10%, then the NPV of this opportunity is closest to:
A.
($88,000).
B.
$1,300,000.
C.
$88,000.
D.
$300,000.
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