Which of the Following Investments Has the Highest Net Present

question 75

Multiple Choice

Which of the following investments has the highest net present value (NPV) ,given that the interest rate is 5.5%?

• A)one that pays $250 at the end of each of the next four years
• B)one that pays $500 at the end of next year and $500 in four years' time
• C)one that pays $250 at the end of next year and $750 in four years' time
• D)one that pays $200 at the end of next year,$200 at the end of the second year,and $300 at the end of the third and fourth years
• E)one that pays $250 at the beginning of each year for the next four years.

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Definitions:

Spinal Gate

A theory suggesting that the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to continue on to the brain.

Phantom Limb Sensation

The experience of sensations, often including pain, in a limb that has been amputated.

Neural Activity

The electrical and chemical processes that take place within the nervous system to transmit information.

Central Nervous System

The complex network of nerve tissues that controls the activities of the body, comprising the brain and spinal cord.