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What is true for the net present value of the project over the three years cycle at a discount rate of 10%?

Your organization is considering to run a project which will entail an investment of $1,,. The product from the project is forecasted to create revenues of $, in the first year after the end of the project and of $, in each of the two following years.

A. The net present value is positive, which makes the project attractive.B. The net present value is positive, which makes the project unattractive.C. The net present value is negative, which makes the project attractive.D. The net present value is negative, which makes the project unattractive.

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Question added by DR MD ANWAR HOSSAIN , Moderator , bayt.com
Date Posted: 2016/10/11
hisham abu dagga
by hisham abu dagga , Project Manager / مدير مشاريع , مؤسسة عبدالكريم العواض للمقاولات

Depending on the quality of the project can not answer

 

Thank you for the invitation

Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

I think The question is missing data ( $) --- amount. Need data to calculate by formula

Abdul Rehman
by Abdul Rehman , Electrical Engineer , Tamdeed Projects

Thanks for the invitation. My answer is option A

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