Dodd Company Is Considering an Investment, Which Will Return a Lump

question 244

Multiple Choice

Dodd Company is considering an investment, which will return a lump sum of $675,000 four years from now. Below is some of the time value of money information that Dodd has compiled that might help in planning compounded interest decisions. $\begin{array}{ll}\text { Present value of } 1 \text { for } 4 \text { periods at } 10 \% & 0.68301 \\\text { Future value of } 1 \text { for } 4 \text { periods at } 10 \% & 1.46410 \\\text { Present value of an annuity of } 1 \text { for } 4 \text { periods at } 10 \% & 3.16986 \\\text { Future value of an annuity of } 1 \text { for } 4 \text { periods at } 10 \% & 4.64100\end{array}$ To the closest dollar, what amount should Dodd Company pay for this investment to earn a 10% return?

• A) $405,000
• B) $270,000
• C) $461,032
• D) $534,914

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Definitions:

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Present-day biases or prejudices against individuals or groups, which can be subtle and systemic rather than overt.

Situational Prejudice

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A type of personality characterized by a strong adherence to authority, compliance to established norms, and submission to authority figures.