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Economics Mcqs
Q
Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?
AA. 800
BB. 40,000
CC. More than zero but less than 800
DD. Less than zero
Correct Answer:
C. C. More than zero but less than 800