(Ignore income taxes in this problem.)A company wants to have $40,000 at the end of a five-year period through investment of a single sum now.How much needs to be invested in order to have the desired sum in five years,if the money can be invested at 10%:
A) $10,551
B) $8,000
C) $24,840
D) $12,882

Question

Quizplus · Accepted Answer

Net present value = $40,000 × Present value for 5 years at 10%
= $40,000 × 0.621 = $24,840

(Ignore Income Taxes in This Problem