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FSOT: 500 Test Prep Study Questions

Category - Mathematics & Statistics

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Which of the following projects has the highest net present value? (Assume the interest rate per year is 10 percent.)
  1. $1,000 invested today results in cash inflow next year of $2,100
  2. $1,000 invested today results in cash inflow next year of $2,200
  3. $1,500 invested today results in cash inflow next year of $2,600
  4. $1,500 invested today results in cash inflow next year of $2,700
Explanation
Answer: B - $1,000 invested today results in cash inflow next year of $2,200
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