1. A project earns $10,000 a year for five years. The present total value of the project is (using a discount rate of 5.75%): 2. a) $50,000 b) more than $50,000 c) less than $50,000 The NPV of a project is $1,012, using a discount rate of 9.75% p.a. The rate of return on this project is: a. 9.75% b. more than 9.75% c. less than 9.75%
1. A project earns $10,000 a year for five years. The present total value of the project is (using a discount rate of 5.75%): 2. a) $50,000 b) more than $50,000 c) less than $50,000 The NPV of a project is $1,012, using a discount rate of 9.75% p.a. The rate of return on this project is: a. 9.75% b. more than 9.75% c. less than 9.75%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1.
A project earns $10,000 a year for five years. The present total value of the project is (using a discount rate
of 5.75%):
2.
a) $50,000
b) more than $50,000
c) less than $50,000
The NPV of a project is $1,012, using a discount rate of 9.75% p.a. The rate of return on this project is:
a. 9.75%
b. more than 9.75%
c. less than 9.75%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c8c41f2-9506-4310-bc17-04440943ad09%2F5cef6ae8-f7f2-42e0-b633-024d50360f91%2F5llphqx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.
A project earns $10,000 a year for five years. The present total value of the project is (using a discount rate
of 5.75%):
2.
a) $50,000
b) more than $50,000
c) less than $50,000
The NPV of a project is $1,012, using a discount rate of 9.75% p.a. The rate of return on this project is:
a. 9.75%
b. more than 9.75%
c. less than 9.75%
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