A Company Is Considering an Investment That Will Return $22,000

question 28

Multiple Choice

A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment? (^{PV of $1}, ^{FV of $1}, ^{PVA of $1}, and ^{FVA of $1}) (Use appropriate factor(s) from the tables provided.)

• A) Not more than $88,000
• B) Not more than $139,476
• C) Not more than $69,738
• D) Not more than $176,000
• E) Not more than $142,190

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Definitions:

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, incorporating the values of society.

Superego

The part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Id

A term in psychoanalytic theory referring to the part of the unconscious personality which contains our primal, instinctive desires and drives.

Ego

A psychoanalytic term referring to the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.