Question

MC Qu. 43 A company is considering... A company is considering an investment that will return $15,000 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.) Multiple Choice Not more than $60,000 Not more than $96,948 Not more than $47,549 Not more than $120,000 Not more than $95,098

Answer 1

PV=$10,125.28

FV=$22,162.5

PVA=$203,040

FVA=$141,450

Step-by-step explanation:

Kindly check the picture attached for full explanation of PV, FV, PVA, FVA workings.