Use the Following Information to Answer the Question(s)below

question 44

Multiple Choice

Use the following information to answer the question(s) below.Consider the following four alternatives:
1.$132 received in two years.
2.$160 received in five years.
3.$200 received in eight years.
4.$220 received in ten years.
-The ranking of the four alternatives from most valuable to least valuable if the interest rate is 6% per year would be:

• A)1,2,3,4.
• B)1,3,2,4.
• C)4,3,1,2.
• D)3,4,2,1.

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Definitions:

Earnings

The net income that a company generates, often reported quarterly or annually, reflecting the company's financial performance.

Acquisition

The act of obtaining control of another company by purchasing its shares or assets.

Merger

The act of amalgamating two distinct entities into a single organization, often aimed at enhancing competitive position and operational efficiency.

Acquiring Firm

A firm that acquires or gains control over another business by means of a merger, acquisition, or takeover.