Use the Table for the Question(s) Below

question 14

Multiple Choice

Use the table for the question(s) below.

-If the risk-free interest rate is 10%,then the NPV for "eenie" is closest to:

• A) -3.64
• B) 2.73
• C) 3.18
• D) 3.64

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Definitions:

Tippee

A person who receives inside information.

Material Fact

A fact that, if known, would influence a person's decision-making related to a contract, transaction, or legal case.

Insider Trading

The unlawful act of conducting trades on the stock market for personal gain by exploiting privileged, non-public information.

Securities Exchange Act

A federal law governing the trading of securities, such as stocks and bonds, aimed at protecting investors and maintaining fair and orderly markets.