Scenario: an Investment of $20,000 Offers a Return of $15,000

question 64

Multiple Choice

Scenario: An investment of $20,000 offers a return of $15,000 in 10 years and another return of $15,000 after 15 years. The market rate of interest is 6 percent per year.
-Refer to the scenario above.What is the net present value of the investment?

• A) ‒$7,112.36
• B) ‒$5,365.10
• C) ‒$475.31
• D) $9,524.19

---

Definitions:

Strategic Marketing

The process of planning and executing activities that aim to achieve a sustainable competitive advantage by understanding customer needs and market trends.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, facilitating adaptability and survival.

Genetic Bottleneck

A sharp reduction in the size of a population leading to a decrease in genetic diversity and potential changes in the population structure.

Artificial Selection

The selective breeding of animals and plants to encourage the occurrence of desirable traits. Individuals with preferred characteristics are mated or cross-pollinated with other individuals having similar traits.