What Is the Present Value of the Following Investment Opportunity

question 183

Multiple Choice

What is the present value of the following investment opportunity. You invest $10,000 now and another $10,000 in one year. In return you receive $23,000 in two years. Other opportunities available with similar risk yield about 12%.

• A)$9406.60
• B)$593.40
• C)($593.40)
• D)$8,929

Understand the concept and application of divergent thinking in generating new ideas.

Recognize the role of insight in the creative process and how it involves convergent thinking.

Learn about different strategies for problem finding in the context of creative processes.

Grasp the importance of preparedness and prior knowledge in enhancing creativity.

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Definitions:

Labor Force

The total number of people, including both the employed and those actively seeking employment, available to work in an economy.

Investment Spending

Expenditures on new physical capital, such as buildings, machinery, and equipment, intended to increase future production.

Great Depression

A severe worldwide economic depression that took place during the 1930s, marked by high unemployment and financial instability.

Future Business Activity

Predictions or estimations about the levels of commercial, industrial, or professional operations and engagements in the upcoming period.