ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm

A. should forgo the investment.
B. is just indifferent between undertaking the investment and not.
C. should undertake the investment.
D. indeterminate from the given information


Answer: A

Economics

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