Question: Terri Allessandro has an opportunity to make any of the following investments. The Purchase price, the lump- sum future value, and the year of receipt
Terri Allessandro has an opportunity to make any of the following investments. The Purchase price, the lump- sum future value, and the year of receipt are given below for each investment. Terri can earn a 10% rate of return on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory and make an investment recommendation to Terri.
Investment Purchase Price Future Value Year of Receipt
A $18,000 $30,000 5
B $ 600 $ 3,000 20
C $ 3,500 $ 10,000 10
D $ 1,000 $ 15,000 40
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