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You Have Been Offered a Chance to Invest in a Coffee

Question 42

Multiple Choice

You have been offered a chance to invest in a coffee plantation in North Queensland.The investment promises to pay $5000 at the end of year 3,$5000 at the end of year 4,$5000 at the end of year 6 and $10 000 at the end of year 10.If you believe that similar investments have a return of approximately 15% what is the highest amount you would be prepared to pay for this investment?


A) $25 000
B) $21 250
C) $10 780
D) $28 750
E) $6180

Correct Answer:

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