A Firm Has Four Different Investment Options

question 152

Multiple Choice

A firm has four different investment options.Option A will give the firm $10 million at the end of one year,$10 million at the end of two years,and $10 million at the end of three years.Option B will give the firm $5 million at the end of one year,$10 million at the end of two years,and $15 million at the end of three years.Option C will give the firm $15 million at the end of one year,$10 million at the end of two years,and $5 million at the end of three years.Option D will give the firm $21 million at the end of one year,nothing at the end of two years,and $9 million at the end of three years.Which of these options has the highest present value if the rate of interest is 5 percent?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Double-Membrane Organelles

Cellular components surrounded by two lipid bilayers, including the nucleus, mitochondria, and chloroplasts in plants, playing various roles in cellular functioning.

Photosynthesis

The method through which green plants and certain organisms utilize sunlight to produce nutrients from carbon dioxide and water, releasing oxygen as a secondary product.

Plastids

Organelles found in the cells of plants and algae that are responsible for photosynthesis, storage of products like starch, and the synthesis of many types of molecules.

Biofilm

A biofilm is a complex aggregation of microorganisms growing on a solid substrate, often encased in a self-produced matrix of extracellular polymeric substances.