For the 2002 Fiscal Year, Lowe's Companies, Inc

question 39

Multiple Choice

For the 2002 fiscal year, Lowe's Companies, Inc., reported an annual net income of $1.023 billion. Assume the income can be reinvested continuously at an annual rate of return of 9.0% compounded continuously. Also assume that Lowe's will maintain this annual net income for the next 7 years. What is the future value of its 7-year net income? Round your answer to three decimal places.

• A) $5.313 billion
• B) $7.644 billion
• C) $22.345 billion
• D) $9.976 billion
• E) $4.663 billion

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Definitions:

Alpha Matching

A statistical technique often used in experimental research to pair subjects based on certain variables to reduce variance.

Congruence

Refers to the degree of agreement, harmony, or correspondence between two or more things, often used in mathematics, psychology, and interpersonal relationships.

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Social Design

The creation of social environments and structures with the purpose of improving societal relations and addressing social issues.