You Are Considering an Investment That Will Pay You $100

question 6

Multiple Choice

You are considering an investment that will pay you $100 in Year 1, $500 in Year 2, $0 in Year 3 and $600 in Year 4. If you require a 12% return, what is the most you should pay for this investment today? (Round to nearest $)

• A)$915
• B)$869
• C)$734
• D)$698

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Definitions:

Service Encounter

The interaction between a customer and a service provider during which a service is provided.

Service Quality

The assessment of how well a delivered service matches customers' expectations.

Tangibility

The attribute of being able to be touched, seen, tasted, felt, or smelled, often used in differentiating goods from services.

Service Quality

The degree to which a delivered service meets the expectations of the customer, often assessed through dimensions like reliability, assurance, tangibles, empathy, and responsiveness.