Molly Costner Deposits $2,500 in Her Checking Account Today

question 48

Multiple Choice

Molly Costner deposits $2,500 in her checking account today.Her checking account pays interest of 2.5% compounded annually.Assuming Molly does not withdraw any funds and does not deposit any additional funds,how much will be in her account in 25 years?

• A) $4,096.54
• B) $3,750.00
• C) $4,102.52
• D) $4,634.86
• E) $4,062.50

Recognize how the firm's investment decisions are influenced by the NPV and cost of capital.

Understand the impact of risk on the cost of capital components and the overall WACC.

Understand the relationship between the returns required by investors and the firm's cost of capital components.

Recognize the significance of market values in calculating the cost of capital over book values.