An investment that costs $5,000 will produce annual cash flows of $2,000 for a period of 4 years. Given a desired rate of return of 8%, what is the present value index? (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round your intermediate calculations. Round your answer to three decimal points.)

A. 1.325.
B. 2.500.
C. 0.755.
D. 1.600.


Answer: A

Business

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