What Is the Minimum Number of Years in Which an Investment

question 36

Multiple Choice

What is the minimum number of years in which an investment costing $210,000 must return $65,000 per year at a discount rate of 13% in order to be an acceptable investment?

• A) 8.69 years
• B) 5.37 years
• C) 7.51 years
• D)4.46 years

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Definitions:

Pollution Permits

Government-issued licenses allowing the holder to emit a certain amount of pollutants into the environment.

Chicago Board

Typically signifies the Chicago Board of Trade (CBOT) or Chicago Board Options Exchange (CBOE), prominent platforms for trading commodities and options respectively.

Economic System

Represents the method employed by societies to allocate resources, produce goods and services, and distribute them amongst its members.

Allocated Efficiently

refers to the optimal distribution of resources so that it maximizes the net benefit received from their use.