Investment purchase price future value year of receipt

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Terri Allessandro has an opportunity to make any of the following investments:

Investment Purchase Price Future Value Year of Receipt

A $12,382 $23,000 5

B $324 $2,000 19

C $3,408 $11,000 9

D $236 $18,000 48

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 12 %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 12 % required return of the income from Investment A, B, C, and D is?

Reference no: EM131848209

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