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%

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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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%
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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