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Business, 20.02.2020 22:30 aiffland113

Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now.

If the appropraite interest rate is 10%, then Nielson Motors should:

a. Do not invest in this opportunity since the NPV is negative.
b. Invest in this opportunity since the NPV is negative.
c. Invest in this opportunity since the NPV is positive.
d. Do not invest in this opportunity since the NPV is positive.

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