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Dagwood Company Needs to Have $75,000 in Four Years

Question 90

Multiple Choice

Dagwood Company needs to have $75,000 in four years. The present value of $1, and the present value of an annuity of $1 for four periods at 10 percent are 0.68301 and 3.16987, respectively.
How much must Dagwood Company invest today in a fund that pays 10 percent, compounded annually?


A) $56,000
B) $51,226
C) $23,660
D) $68,182

Correct Answer:

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