Tricorp Company is considering an investment that is expected to return $320,000 after four years. If Tricorp demands a 15% return, what is the most that it will be willing to pay for this investment? 15%, 4 years annually Factor Present value of a $1 0.572 Future value of $11.749 Present value of an annuity 2.855 Future value of an annuity 4.993 a. $320,000 b. $177,696 c. $183,040 d. $45,216 e. $278,272
Tricorp Company is considering an investment that is expected to return $320,000 after four years. If Tricorp demands a 15% return, what is the most that it will be willing to pay for this investment? 15%, 4 years annually Factor Present value of a $1 0.572 Future value of $11.749 Present value of an annuity 2.855 Future value of an annuity 4.993 a. $320,000 b. $177,696 c. $183,040 d. $45,216 e. $278,272
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Tricorp Company is considering an
investment that is expected to
return $320,000 after four years. If
Tricorp demands a 15% return, what
is the most that it will be willing to
pay for this investment?
15%, 4 years annually Factor
Present value of a $1 0.572
Future value of $11.749
Present value of an annuity 2.855
Future value of an annuity 4.993
a. $320,000
b. $177,696
c. $183,040
d. $45,216
e. $278,272](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1eaae1fc-ed33-449b-be0f-97d8c49ba64f%2F5a5e1cac-e3e4-43ea-8401-260d5103823c%2Frjopjfg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tricorp Company is considering an
investment that is expected to
return $320,000 after four years. If
Tricorp demands a 15% return, what
is the most that it will be willing to
pay for this investment?
15%, 4 years annually Factor
Present value of a $1 0.572
Future value of $11.749
Present value of an annuity 2.855
Future value of an annuity 4.993
a. $320,000
b. $177,696
c. $183,040
d. $45,216
e. $278,272
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