You Are Offered an Investment Opportunity That Costs You $28

question 59

Multiple Choice

You are offered an investment opportunity that costs you $28 000, has a net present value (NPV) of $2 278, lasts for three years, has an interest rate of 10%, and produces the following cash flows: The missing cash flow from year 2 is closest to:

• A)$12 000
• B)$10 000
• C)$12 500
• D)$13 000

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Definitions:

False Endorsements

misleading approvals or support, often used in advertising, suggesting that a product or service is recommended by someone who has not actually endorsed it.

Social Media

Platforms on the internet that enable users to create, share content, or participate in social networking.

Utility

Refers to the usefulness or practicality of an object, idea, or service, especially in terms of satisfying needs or wants.

Contract Law

The branch of legal study that deals with the creation, enforcement, and legality of agreements between two or more parties.