Today you have paid $275 for an investment that pays $100 in one year, $500 in two years, and $X in 4 years. Assuming the market interest rate is 100% and the net present value of the investment is zero, what must be true about X? (a) X is greater than $2,500 (b) X is greater than or equal to $2,000 but less than $2,500 (c) X is greater than or equal to $1,500 but less than $2,000 (d) X is greater than $1,200 but less than $1,500 (e) X is less than or equal to $1,200

Today you have paid $275 for an investment that pays $100 in one year, $500 in two years, and $X in 4 years. Assuming the market interest rate is 100% and the net present value of the investment is zero, what must be true about X? (a) X is greater than $2,500 (b) X is greater than or equal to $2,000 but less than $2,500 (c) X is greater than or equal to $1,500 but less than $2,000 (d) X is greater than $1,200 but less than $1,500 (e) X is less than or equal to $1,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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