An investment of $165,000 yields a net annual income of $45,000 for 5 years with no salvage value. If the study period is 7 years, and MARR 10%, what is the future worth of this alternative at EOY 7 assuming that cash-flows will be reinvested at MARR until the end of the study period?

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.