Question

Terri Allessandro has an opportunity to make any of the following investments: The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 8% on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri. The present value, PV, at 8% required return of the income from Investment A is $ . (Round to the nearest cent.) i Data Table Investment Purchase Price Future Value Year of Receipt $20,286 $33,000 $721 $2,000 $3,807 $12,000 $5,925 $17,000 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 17 13 28 Print Done

Answer 1

ДА В 1 Investment Purchase price Future value Years Present value 2 A $ 20,286.00 $33,000.00 6 $509.60 3 B $ 721.00 $ 2,000.00 17 ($180.46) 4 C $ 3,807.00 $ 12,000.00 13 $605.38 5 D $ 5,925.00 $ 17,000.00 28 ($3,954.47) ДА B Ε 1 Investment Purchase price Future value Years Present value 2 A 20286 _133000 16 !=PV(8%,D2,,-C2)-B2 . 3 B 721 2000 17 =PV(8%,D3, -C3)-B3 4 c 3807 12000 =PV(8%,D4,,-C4)-B4 5 D 5925 17000 =PV(8%,D5,-C5)-B5 13