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Scenario: an Investor Is Considering Three Different Investment Options

question 142

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Scenario: An investor is considering three different investment options. Investing in Option A pays him $4,000 after 6 years, investing in Option B pays him $7,600 after 7 years, and investing in Option C pays him $9,000 after 8 years. If he deposits the amount with a bank, he would receive an annual interest rate of 9 percent.
-Refer to the scenario above.If the investor plans to invest a sum of $4,000,the net present value of Option A is ________.


Definitions:

Unenforceable

Describes a contract or agreement that, due to legal deficiencies or irregularities, cannot be legally upheld or enforced.

Contract Clause

A provision included in a contract that specifies the obligations, rights, or restrictions for the parties involved.

Restitution

The act of restoring or returning something to its rightful owner or compensating for loss, damage, or injury caused.

Architect's Breach

A violation or failure by an architect to fulfill contractual duties or meet professional standards, resulting in harm or loss.

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