Suppose That You Are Considering an Investment That Will Pay

question 65

Multiple Choice

Suppose that you are considering an investment that will pay you $4000 per year for the next five years.The appropriate rate of interest is 5%.You want to know the present value of the cash flows from this investment.To solve this problem in Microsoft Excel,you would use which of the following excel formulas?

• A)=PV(.05,5,4000,0,0)
• B)=PV(.05,5,4000,0,1)
• C)=PV(5,.05,4000,0)
• D)=PV(5,5,4000,0)

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Definitions:

Creative Thinking

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The ability to solve problems quickly and effectively by evaluating information deeply and accurately.

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