Smart Solutions Inc. is evaluating a capital project for expansion. The project costs $10,000, and it is expected to generate $5,000 per year for three years. If the required rate of return is 10 percent, what is the terminal value of the project?
A. $15,000
B. $16,550
C. $11,550
D. $14,050
E. $12,500
Answer: B
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