You inherited an oil well that will pay you $39,000 per year for 25 years, with the first payment being made today. If you think a fair return on the well is 7.5%, how much should you ask for it if you decide to sell it?

A. $565,476.20
B. $359,848.49
C. $387,888.64
D. $467,335.71
E. $579,496.27


Answer: D

Business

You might also like to view...

Which of the following is an input measure of a salesperson's success?

A) volume of sales B) number of orders C) number of sales calls D) customer satisfaction E) level of repeat business

Business

According to Porter's five forces model, in which of the following examples would rivalry be considered as a weak force affecting the market?

A. used car dealers B. packaged food manufacturers C. holiday tour agents D. insurance providers E. search engine designers

Business

Strategic greening integrates and coordinates all of the firm's activities on environmental issues across every functional area of the firm.

Answer the following statement true (T) or false (F)

Business

New Moon, the second movie in the vampire love-saga, has been promoted through TV, newspaper, magazine, Web sites, and merchandise. To make sure that all of the promotional messages are coordinated, the studio which produced it should use the:

A. integrated marketing communications approach B. integrated communications management approach C. AIDA concept D. interpersonal and mass communications approach E. coordinated market management approach

Business