Salvatore Has the Opportunity to Invest in a Scheme Which

question 15

Multiple Choice

Salvatore has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years.He must invest $10,000 at the start of the first year and an additional $10,000 at the end of the first year.What is the net present value (NPV) of this investment if the interest rate is 4%?

• A)-$1410.67
• B)-$112.23
• C)$1248.56
• D)$2643.73
• E)$3210.15

---

Definitions:

Expense Report

A financial document that details the expenditures incurred during business operations or activities.

Personal Entertainment

Activities or products designed to provide amusement or enjoyment to individuals in their personal time.

Reimbursement

Reimbursement is the process of compensating someone for out-of-pocket expenses they have incurred on behalf of the company or another person, often related to business or travel expenses.

Taxi Fares

Charges levied for the service of transporting individuals in a taxi, typically calculated based on distance, time, or a combination of both.