$12 500 Is Invested in a Certain Business at the Start

question 66

Multiple Choice

$12 500 is invested in a certain business at the start of a year, in return the investor will receive $3 000 at the end of each of the next five years. What is the net present value of this business opportunity if the interest rate is 5% per year?

• A)$137.09
• B)$443.88
• C)$385.10
• D)$488.43

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Definitions:

Compressed Work Week

An alternative work schedule allowing employees to work their standard hours in fewer days per week.

Core Time

Designated time periods during which employees are required to be at work or available, typically within flexible work schedules.

Flex-Time

Flex-Time is an employment practice that allows workers to choose their work hours within a specified range to accommodate personal needs and preferences, promoting work-life balance.

Compressed Workweek

A work schedule that allows an employee to work a full-time job in fewer days than the traditional five-day workweek.