Following Is a Table for the Present Value of $1

question 153

Multiple Choice

Following is a table for the present value of $1 at compound interest: Following is a table for the present value of an annuity of $1 at compound interest: ​
-Using the tables provided, if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next 4 years, the net present value of the investment, assuming an earnings rate of 10%, is

• A)$23,500
• B)$16,050
• C)$25,360
• D)$1,860

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