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Please use the following information to answer questions 14-16: Anthony's mother is wealthy. She wants to make sure that Anthony has enough money to learn
Please use the following information to answer questions 14-16: Anthony's mother is wealthy. She wants to make sure that Anthony has enough money to learn whatever profession he chooses, but not so much money that he doesn't have to work. She consults with a valuation expert named Cole, who creates the following investment plan for her: Anthony's mother will give Cole $500,000 today and he will provide Anthony with $60,000 per year starting on January 1st of the year when Anthony turns 21 and ending on January 1st of the year when Anthony turns 30. Assume today is January 1st, 2021 and Anthony is 12 years old. 14. The net present value of this investment arrangement is a. $500,000 b. $600,000 c. Less than $600,000 d. Less than $500,000 15. This investment arrangement is best classified as a. A loan b. A bond C. An annuity d. A dividend paying common stock 16. This investment arrangement a. Is a bad deal b. is a good deal Is an average deal d. Not enough information C. ghted
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