You Are Making a $120,000 Investment and Feel That a 10

question 5

Multiple Choice

You are making a $120,000 investment and feel that a 10 percent rate of return is reasonable given the nature of the risks involved. You feel you will receive $48,000 in the first year, $54,000 in the second year, and $56,000 in the third year. You expect to pay out $12,000 as an additional investment in the fourth year. What is the net present value of this investment given your expectations?

• A) $2,141.93
• B) $5,607.16
• C) $14,206.10
• D) $16,233.33
• E) $18,534.25

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Definitions:

Affiliation Motivation

The drive to build and maintain social relationships and feel connected and accepted by others.

Hatred

An intense emotion expressing animosity, anger, or hostility towards a person, group, or object.

Jealousy

An emotion stemming from fear or envy of losing affection or status to a rival.

Oedipus Complex

A Freudian theory proposing a child's unconscious desire for the opposite-sex parent and jealousy toward the same-sex parent.