Multiple Choice
The following data was compiled for Infer-Tech PC Company in order to assess the effect of a $500,000 initial investment with a $70,000 operating cost increase per year over a five year period.The company factored in a 15% required rate of return.
Required
Compute the present value of the investment in year 2 and year 4.
A) $132,444;$85,669
B) $120,522;$72,996
C) $115,669;$85,000
D) $128,544;$97,198
E) $105,008;$80,663
Correct Answer:

Verified
Correct Answer:
Verified
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