Suppose You Make a $5,000 Investment That Will Return $3,000

question 44

Multiple Choice

Suppose you make a $5,000 investment that will return $3,000 in year 2 and another $3,500 in year 4.With an interest rate of 4.5%,what is the NPV of this project?

• A) $247.34
• B) $682.15
• C) $1,500.00
• D) $2,162.50

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Definitions:

Property Taxes

Taxes assessed on real estate by local government, based on the property's value.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Photo-prints

Photographic images produced on paper or other substrates from digital or film originals.

Industrial Photo-finishing

Refers to the commercial process of developing and printing photographic images on a large scale, typically for businesses.