An investment will pay $205,000 at the end of next year for an investment of $183,000 at the start of the year.If the market interest rate is 8% over the same period,should this investment be made?
A) No,because the investment will yield $6240 less than putting the money in a bank.
B) Yes,because the investment will yield $2360 more than putting the money in a bank.
C) Yes,because the investment will yield $4280 more than putting the money in a bank.
D) Yes,because the investment will yield $7360 more than putting the money in a bank.
E) Yes,because the investment will yield $14,640 more than putting the money in a bank.
Correct Answer:
Verified
Q68: Owen expects to receive $20,000 at the
Q69: You have made an investment which will
Q70: If $476 invested today yields $500 in
Q71: Why is it usually necessary to use
Q72: You are scheduled to receive $10,000 in
Q74: Stella deposits $5000 in a savings account
Q75: If the risk-free rate of interest (rf)is
Q76: Samantha has holdings of 250 troy ounces
Q77: A vintner is deciding when to release
Q78: If $476 invested today yields $500 in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents