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1. |
Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ? |
A. | 800 |
B. | 40,000 |
C. | more than zero but less than 800 |
D. | less than zero |
Answer» D. less than zero | |