A Company Is Considering an Investment That Will Return $20,000

question 46

Multiple Choice

A company is considering an investment that will return $20,000 at the end of each semiannual period for four years.If the company requires an annual return of 10%,what is the maximum amount it is willing to pay for this investment?

• A)Not more than $63,398
• B)Not more than $126,796
• C)Not more than $80,000
• D)Not more than $129,264
• E)Not more than $160,000

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