At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than

A) $1,000.
B) $2,577.
C) $2,673.
D) $3,000.

Profit-Maximizing

The method through which a company identifies the pricing and production quantity that maximizes its profits.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on deposited funds over a specific period.

Investment Project

A project involving the commitment of resources with the expectation of generating future returns or benefits.