Alexander Industries Just Had a Very Profitable Year

question 82

Multiple Choice

Alexander Industries just had a very profitable year. The owner has decided to invest $225,000 of the profits in a venture that pays an 8% rate of return for fifteen years. How much more would the investment have been worth if the owner could have made 9% on this investment?

• A) $52,910.25
• B) $105,820.50
• C) $211,641.00
• D) $713,738.05
• E) $819,558.55

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Definitions:

Modules

Parts or components of a product previously prepared, often in a continuous process.

Standardized Product

A product that is manufactured in a consistent, unchanged manner to ensure it meets specified criteria and quality.

Product Focus

A strategic approach that centers on developing and marketing a specific product or product line.

High Fixed Costs

Costs that remain constant regardless of the level of production or sales in a business, such as rent, salaries, or equipment leases.