Multiple Choice
Micha offers to pay an investor of a lump sum in her business today $1000 in one year's time,$2000 in two years' time,$3000 in three years' time and $4000 in 4 years' time.If the interest rate is 8%,what is the minimum value of the lump sum she must ask of an investor if the net present value (NPV) is to be equal to zero?
A) $6,660.02
B) $6,836.34
C) $7,962.22
D) $8,468.56
E) $7,350.30
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Use the table for the question(s) below.<br>
Q50: Faisal has $15,000 in his savings account
Q51: How long will it take $50,000 placed
Q52: If $10,000 is invested in a certain
Q53: You are saving money to buy a
Q55: A perpetuity will pay $1000 per year,starting
Q56: Jessica deposits her $2,500 bonus cheque into
Q57: A growing perpetuity' with a first payment
Q58: A consol bond (perpetual bond)pays $27,500 every
Q59: If the current rate of interest is