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$12 500 Is Invested in a Certain Business at the Start

Question 2

Multiple Choice

$12 500 is invested in a certain business at the start of a year, in return the investor will receive $3 000 at the end of each of the next five years. What is the net present value of this business opportunity if the interest rate is 5% per year?


A) $137.09
B) $443.88
C) $385.10
D) $488.43

Correct Answer:

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