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:

U.S. Territory

Land or regions under the jurisdiction of the United States but not fully incorporated as states, often having distinct governance structures.

Andrew Jackson

The seventh President of the United States (1829-1837), known for his leadership during the Battle of New Orleans and for his policies regarding Native American removal.

Monroe Doctrine

A U.S. foreign policy principle set forth in 1823, proclaiming opposition to European colonialism in the Americas.

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