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NEW QUESTION: 1
A. Option D
B. Option A
C. Option B
D. Option C
Answer: D
NEW QUESTION: 2
A. 0
B. 1
C. 2
D. 3
Answer: A
NEW QUESTION: 3
A company must decide today whether to proceed with a proposed project. If the project proceeds, the initial investment of $150,000 would be made in one year's time. The benefit of the project would be a perpetuity of $22,000 per year commencing one year after the investment is made. The company's cost of capital is 14% per year.
To the nearest $100, what is the net present value of the project?
A. -$12,200
B. $7,100
C. $6,300
D. $25,600
Answer: C
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