If $10,000 Is Invested in a Certain Business at the Start

question 52

Multiple Choice

If $10,000 is invested in a certain business at the start of the year,the investor will receive $3000 at the end of each of the next four years.What is the net present value (NPV) of this business opportunity if the interest rate is 7% per year?

• A)$148.53
• B)$161.63
• C)$172.45
• D)$178.88
• E)$183.43

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Definitions:

Public Education

Public education refers to the schooling system that is financed and operated by government agencies to provide free education to all students.

Wealth Distribution

The manner in which wealth is shared among the members of a community or society.

Income Inequality

The uneven distribution of income within a population, leading to disparities in wealth and economic opportunities.

Income Classes

Categories of individuals or households distinguished by levels of income, such as low, middle, and high income.