A firm has an opportunity to invest $95,000 today that will yield $109,250 in one year. If interest rates are 4%, what is the net present value (NPV) of this investment?

A) $10,048
B) $11,053
C) $16,077
D) $14,250


Answer: A

Business

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CarWorks Company has 100,000 authorized shares of $4 par common stock. The company issued 40,000 shares at $8 . Subsequently, CarWorks declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

a. $8,800 b. $4,800 c. $3,200 d. $6,400

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What will be an ideal response?

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Indicate whether the statement is true or false

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