Using the Tables Above,if an Investment Is Made Now for $23,500

question 179

Multiple Choice

Using the tables above,if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next 4 years,what would be the net present value of the investment,assuming an earnings rate of 10%?

• A) $23,500
• B) $16,050
• C) $25,360
• D) $1,860

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Definitions:

Per Capita

A statistical measure that represents the average per person, commonly used to compare economic indicators such as income or GDP among different populations.

Real GDP

Measures the value of all goods and services produced by an economy, adjusted for inflation, to reflect the actual economic output.

National Income

The total value of all goods and services produced by a country's economy over a specific period, after adjustments for income from foreign investments and payments to other countries.

Corporate Profits

The excess of revenues over expenses for corporations, indicating the financial health and performance of companies.