A project you are considering is expected to provide benefits worth $225,000 in one year. If the risk-free rate of interest (rf) is 8%, then the value of the benefits of this project today are closest to:

A) $190,333
B) $208,333
C) $225,000
D) $243,000

B
Explanation: B) $225,000/(1.08 ) = $208,333

Business

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