An electricity company has the opportunity to use natural gas to generate electricity at a cost of $30 per unit in 2 years. The current market rate of interest is 4 percent. The present value of this cost is about Multiple Choice   $28.   $29.   $32.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.2: Investing: Taking Risks With Your Savings
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An electricity company has the opportunity to use natural gas to generate electricity at a cost of $30 per unit in 2 years. The current market rate of interest is 4 percent. The present value of this cost is about

Multiple Choice
  •  
    $28.
  •  
    $29.
  •  
    $32.
  •  

 

 

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