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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
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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