Scenario: an Investor Is Considering Three Different Investment Options

question 30

Multiple Choice

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.What is the present value of Option A?

• A) $2,464.11
• B) $2,385.07
• C) $2,463.66
• D) $4,898.46

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Definitions:

Organization Plans

Strategic outlines that guide a company's goals, actions, and resource allocation.

Control Phase

The stage in a project or process where monitoring and adjustments are made to ensure objectives are met efficiently and effectively.

Analyzing Actual Results

The process of examining the real outcomes or outputs of a business activity to assess performance and identify areas for improvement.

Control Phase

The stage in a process or project where monitoring occurs to ensure that objectives are being met and to implement corrective actions if necessary.