Ransport Company Has Made an Investment in Another Company That

question 39

Multiple Choice

Ransport Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment? (Round to the nearest dollar.)

• A) $101,766
• B) $124,868
• C) $251,154
• D) $186,250

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Definitions:

Rock Forms

The various shapes and structures that rocks can take, including layered formations, intrusions, and extrusions.

Angular Clasts

Rock fragments with sharp edges that result from mechanical weathering processes.

Long Distance

Refers to something that is located far away or involves a great amount of space between two points or locations.

Steep Slopes

Geographic areas where the land surface angles sharply, making it prone to erosion, landslides, and difficult for certain types of vegetation to root.