You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here is the information on the proposed project.
Up-front cost: $250,000
Next year's revenue: $25,000
Real interest rate: 4%
Depreciation rate: 6%
What is the present value of the stream of payments from this project?
A)$250,000
B)$0
C)$275,000
D)$625,000

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The Answer of You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here is the information on the proposed project.
Up-front cost: $250,000
Next year's revenue: $25,000
Real interest rate: 4%
Depreciation rate: 6%
What is the present value of the stream of payments from this project?
A)$250,000
B)$0
C)$275,000
D)$625,000

You've Graduated from College and Are Now Working in an Investment