Allan Decides to Invest in a New Company Which Would

question 96

Multiple Choice

Allan decides to invest in a new company which would allow him to receive $250,000 at the end of each year for the next 5 years.He purchases 100,000 shares at the price of $6.50.What is the NPV of a single share,if the interest rate is 15% per year?

• A)$8.38
• B)$1.88
• C)$6.00
• D)$838,038.77
• E)$188,038.77

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Definitions:

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., to enrich a community or organization.

Ethical Pluralism

The belief that there are multiple ethical principles which can be valid, but might come into conflict in certain situations, requiring a balance or choice to be made.

Absolutism

A political theory or form of government in which absolute power is vested in a single ruler or authority.

Exoneration

The legal process through which someone is officially freed from blame or found not guilty of a crime they were accused of.