The Following Data Was Compiled for Infer-Tech PC Company in Order

question 55

Multiple Choice

The following data was compiled for Infer-Tech PC Company in order to assess the effect of a $500,000 initial investment with a $70,000 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 year 2 and year 4.

• A)$132,444;$85,669
• B)$120,522;$72,996
• C)$115,669;$85,000
• D)$128,544;$97,198
• E)$105,008;$80,663

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Definitions:

Sample Size

The number of observations or data points used in a statistical analysis.

Confidence Interval

A range of values, derived from the sample data, that is believed, with a certain probability, to contain the true population parameter.

Population Mean

The average of all the individuals or items in a population, calculated as the sum divided by the total number in the population.

Degrees Of Freedom

The number of independent values or quantities which can vary in the analysis without violating any constraints.