Ando Company Earns 11% on an Investment That Pays Back

Multiple Choice

Ando Company earns 11% on an investment that pays back $660,000 at the end of each of the next 5 years. Ando finance department has the following values related to the time value of money to help in its planning process and compounded interest decisions. $\begin{array}{ll}\text { Present value of } 1 \text { for } 5 \text { periods at } 11 \% & 0.59345 \\\text { Future value of } 1 \text { for } 5 \text { periods at } 11 \% & 1.68506 \\\text { Present value of an annuity of } 1 \text { for } 5 \text { periods at } 11 \% & 3.69590 \\\text { Future value of an annuity of } 1 \text { for } 5 \text { periods at } 11 \% & 6.22780\end{array}$ To the closest dollar, what is the amount Ando invested to earn the 11% rate of return?

A) $1,112,139
B) $391,677
C) $2,439,294
D) $178,577