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Micha Offers to Pay an Investor of a Lump Sum

Question 89

Multiple Choice

Micha offers to pay an investor of a lump sum in her business today $1000 in one year's time,$2000 in two years' time,$3000 in three years' time and $4000 in 4 years' time.If the interest rate is 8%,what is the minimum value of the lump sum she must ask of an investor if the net present value (NPV) is to be equal to zero?


A) $6,660.02
B) $6,836.34
C) $7,962.22
D) $8,468.56
E) $7,350.30

Correct Answer:

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