Use the Table for the Question(s) Below

question 77

Multiple Choice

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

-Suppose the term structure of interest rates is shown below: The net present value (NPV) of an investment that costs $4320 and pays $1600 certain at the end of one, three, and five years is closest to ________.

• A) $91.37
• B) $137.05
• C) $114.21
• D) -$114.21

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Definitions:

Assumptions

Premises or statements taken as true without proof for the purpose of argument or calculation in modeling and problem-solving.

Organization Has Inventory

Indicates that a business or entity maintains a stock of goods or materials for operational purposes and fulfillment of customer demands.

Decoupling

Refers to the strategy of creating independence between supply chain partners for improved flexibility and reduced dependency.