Aman named Don, dressed in a top hat and shiny shoes, shows up at Wahid's office and makes the following business proposition: "/'ve got the best screenplay development software on the market. It's guaranteed to boost your revenues by $4,000 by the end of the year. Il lease it to you for the year for $3,800, cash up front." What is the present value of the investment if the interest rate is 4 percent? OA. $3,846 OB. $4,004 Oc. $3,992 OD. $4,160 Is it a smart investment?

Answer rating: 100% (QA)

To determine the present value of the investment we can use the formula for pre... View the full answer