The present worth of a multi-year investment with all positive cash flows (incomes) other than the initial investment is $10,000 at MARR = i%. If MARR changes to (i + 1)%, the present worth will be a. Less than $10,000 b. Equal to $10,000 c. Greater than $10,000 d. Cannot determine without the cash flow profile and a value for i.

The present worth of a multi-year investment with all positive cash flows (incomes) other than the initial investment is $10,000 at MARR = i%. If MARR changes to (i + 1)%, the present worth will be a. Less than $10,000 b. Equal to $10,000 c. Greater than $10,000 d. Cannot determine without the cash flow profile and a value for i.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 7E

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