The Following Information Was Compiled for Infer-Tech PC Company Applying

question 31

Multiple Choice

The following information was compiled for Infer-Tech PC Company applying a $500,000 initial investment with an $80,000 operating cost increase per year over a five year period.The company factored in a 15% required rate of return.

Required
Compute the present value of the investment in years 2 and 4.Next,compute the net present value for the investment for the full five years.

• A)$17,688;$29,599;$98,952
• B)$15,123;$28,588;$103,388
• C)$11,015;$22,336;$105,950
• D)$15,866;$25,411;$101,990
• E)$5,652;$32,652;$85,420

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Definitions:

Brokerage

The act of acting as an intermediary between two or more parties in a negotiation, transaction, or arrangement.

Liaison

A person or role responsible for establishing and maintaining communication between different groups or organizations.

Veil of Ignorance

A method of determining the morality of issues proposed by philosopher John Rawls, implying decisions should be made without knowledge of one's own position in society.

Common Good

The benefit or interests of all participants or members of a community or society considered as a whole.