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A Company Is Considering an Investment That Will Return $22,000

Question 54

Multiple Choice

A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)


A) Not more than $88,000
B) Not more than $139,476
C) Not more than $69,738
D) Not more than $176,000
E) Not more than $142,190

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