Consider an Investment That Pays $1000 Certain at the End

question 41

Multiple Choice

Consider an investment that pays $1000 certain at the end of each of the next four years.If the investment costs $3500 and has an NPV of $74.26,then the four-year risk-free interest rate is closest to:

• A)4.50%.
• B)4.58%.
• C)4.55%.
• D)4.53%.

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Definitions:

Telecommuting

A work arrangement that allows employees to perform their job duties from outside the traditional office environment, usually from home, using telecommunications technologies.

Flexible Work Arrangement

Employment terms that allow for variations in working hours, locations, or schedules to accommodate employees' needs and improve work-life balance.

Compressed Workweek

A work schedule that allows an employee to work a full-time job in fewer than the conventional five days.

Flexibility

The ability to adapt to new, changing, or challenging circumstances, often valued in both personal and professional contexts.