Your association is thinking about running a venture which will $1000,000. The item from the venture is determined to make ince primary year after the end of the venture and of $420,000 in each of is valid for the net present estimation of the venture over the three yo of 10%? A. The net present value is positive, which makes the project attracti B. The net present value is positive, which makes the project unattra C. The net present value is negative, which makes the project attract

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 12P
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6. Your association is thinking about running a venture which will involve a speculation of
$1,000,000. The item from the venture is determined to make incomes of $250,000 in the
primary year after the end of the venture and of $420,000 in each of the two after years. What
is valid for the net present estimation of the venture over the three years cycle at a rebate rate
of 10%?
A. The net present value is positive, which makes the project attractive.
B. The net present value is positive, which makes the project unattractive.
C. The net present value is negative, which makes the project attractive.
D. The net present value is negative, which makes the project unattractive.
Transcribed Image Text:6. Your association is thinking about running a venture which will involve a speculation of $1,000,000. The item from the venture is determined to make incomes of $250,000 in the primary year after the end of the venture and of $420,000 in each of the two after years. What is valid for the net present estimation of the venture over the three years cycle at a rebate rate of 10%? A. The net present value is positive, which makes the project attractive. B. The net present value is positive, which makes the project unattractive. C. The net present value is negative, which makes the project attractive. D. The net present value is negative, which makes the project unattractive.
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ISBN:
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Publisher:
SAGE Publications, Inc