The Above Table Shows the Future Operating Profits from an Investment

question 49

Multiple Choice

The above table shows the future operating profits from an investment. The future operating profits are earned at the end of e the respective years.
-Refer to the table above. If the discount rate is 4 percent and the cost of the investment is $40,000, what is the net present value of the investment?

• A)$44,469.77
• B)$5,815.32
• C)$45,815.32
• D)$6,221.77

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Definitions:

Church Doctrine

Official teachings and beliefs sanctioned by a religious institution, particularly within Christianity.

Possession

The state of having, owning, or controlling something, or in some contexts, a state in which a person is believed to be influenced or controlled by an external entity.

Nervous Breakdown

A non-medical term that signifies a period of intense mental distress, where an individual is unable to function normally in everyday life.

Mental Hygiene Movement

A movement started by Dorothea Dix (1802–1887), a Boston schoolteacher, characterized by a desire to protect and provide humane treatment for the mentally ill. Her campaign resulted directly in the opening of 32 state hospitals, including 2 in Canada. Despite the noble aims, the asylums were overcrowded and the staff had no time to do more than warehouse and restrain the patients.