4454EconomicsMedium
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?
Amore than zero but less than 800
B800
Cless than zero
D40,000
Correct answer
A. more than zero but less than 800
Explanation
The correct answer is more than zero but less than 800.