If you were offered the chance of an investment in a mango orchard in North Queensland and you were promised a return of $12 000 at the end of each year for the next 10 years, what is the maximum amount you would be prepared to pay for such an investment if you required a return of 12%?

1. $107 143
2. $210 584
3. $87 603
4. $67 803

Answer rating: 100% (QA)

The maximum amount to be paid will be the present value of the promised re... View the full answer