If you invest $5,072 in a long-term venture, you will receive $985 per year forever. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment? Choose the closest answer below. OA. The capitalized worth of your investment is $4,177. OB. The capitalized worth of your investment is $4,974. OC. The capitalized worth of your investment is $5,204. OD. The capitalized worth of your investment is $4,778.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...
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If you invest $5,072 in a long-term venture, you will receive $985 per year forever. Assuming your interest rate is 10%
per year, what is the capitalized worth of your investment?
EXTE
Choose the closest answer below.
OA. The capitalized worth of your investment is $4,177.
OB. The capitalized worth of your investment is $4,974.
OC. The capitalized worth of your investment is $5,204.
D. The capitalized worth of your investment is $4,778.
Transcribed Image Text:K If you invest $5,072 in a long-term venture, you will receive $985 per year forever. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment? EXTE Choose the closest answer below. OA. The capitalized worth of your investment is $4,177. OB. The capitalized worth of your investment is $4,974. OC. The capitalized worth of your investment is $5,204. D. The capitalized worth of your investment is $4,778.
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