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A project costs 5,000 today and provides secure income for 400 years from next year, but it is uncertain how long the project will continue to generate income. The risk-free interest rate is 4 percent. How many years must the project at least continue to provide these revenues for the net present value to be positive? O 12.5 år O Ca 18 år O 13.1 år O 13 år

A project costs 5,000 today and provides secure income for 400 years from next year, but it is uncertain how long the project will continue to generate income. The risk-free interest rate is 4 percent. How many years must the project at least continue to provide these revenues for the net present value to be positive? O 12.5 år O Ca 18 år O 13.1 år O 13 år

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A project costs 5,000 today and provides secure income for 400 years from next year, but it is uncertain how long the project will continue to generate income. The risk-free interest rate is 4 percent. How many years must the project at least continue to provide these revenues for the net present value to be positive? O 12.5 år O Ca 18 år O 13.1 år O 13 år
Transcribed Image Text:A project costs 5,000 today and provides secure income for 400 years from next year, but it is uncertain how long the project will continue to generate income. The risk-free interest rate is 4 percent. How many years must the project at least continue to provide these revenues for the net present value to be positive? O 12.5 år O Ca 18 år O 13.1 år O 13 år
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