A company is considering an investment that will return at

Question

A company is considering an investment that will return $20,000 at the end of each semiannual period for four years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?

A. Not more than $63,398

B. Not more than $126,796

C. Not more than $80,000

D. Not more than $129,264

E. Not more than $160,000

Answer

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