Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:

-Consider an investment that pays $1 000 at the end of each of the next four years. If the investment costs $3 500 and has a net present value (NPV) of $74.26, then the four-year risk-free interest rate is closest to:

• A)4.53%
• B)4.55%
• C)4.5%
• D)4.58%

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Definitions:

CPM Network

Critical Path Method Network, a project management technique used to estimate the duration of a project and identify the most critical tasks that determine its completion time.

Code Of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

Crashing

A project management technique used to reduce the time for task completion by increasing the allocation of resources, often leading to higher costs.

CPM Network

A project management tool that uses critical path method (CPM) principles to model the activities and events of a project in a graphical network.