You Are Considering the Purchase of an Investment That Would

question 71

Multiple Choice

You are considering the purchase of an investment that would pay you $5,000 per year for Years 1-5,$3,000 per year for Years 6-8,and $2,000 per year for Years 9 and 10.If you require a 14% rate of return,and the cash flows occur at the end of each year,then how much should you be willing to pay for this investment?

• A) $15,819.27
• B) $21,937.26
• C) $32,415.85
• D) $38,000.00
• E) $52,815.71

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Definitions:

Detached

Being impartial or disinterested; aloof or emotionally uninvolved.

Career Choice

The process of deciding on a specific path or profession to pursue based on one's interests, values, and skills.

Negative Attitude

A pervasive pattern of thinking or feeling about people, situations, or oneself in a pessimistic or detrimental manner, often leading to adverse outcomes or behaviors.

Work/Life

The balance or integration of work and personal life, focusing on managing career and personal or family needs effectively.