A Company Is Considering an Investment That Will Return $20,000

question 23

Multiple Choice

A company is considering an investment that will return $20,000 semiannually at the end of each semiannual period for 4 years.If the company requires an annual return of 10%,what is the maximum amount it is willing to pay for this investment?

• A)Not more than $ 63,398
• B)Not more than $126,796
• C)Not more than $ 80,000
• D)Not more than $129,264
• E)Not more than $160,000

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Definitions:

Observational Learning

A learning process in which individuals acquire new behaviors or knowledge by watching and imitating others.

Excoriation Disorder

A mental disorder characterized by the compulsive urge to pick at one's skin to the extent of causing damage.

Skin-Picking

A compulsive behavior involving the repetitive picking at one's own skin, often leading to tissue damage.

Diagnosed

Determining the type of a disease or issue through the analysis of its symptoms.