After saving $1500 by waiting tables, you are about to buy a 50-inch TV. You notice that
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After saving $1500 by waiting tables, you are about to buy a 50-inch TV. You notice that the store is offering a “one year same as cash” deal. You can take the TV home today and pay nothing until one year from now, when you will owe the store the $1500 purchase price. If your savings account earns 5% per year, what is the NPV of this offer? Show that its NPV represents cash in your pocket.
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PLAN You are getting something worth 1500 today the TV and in exchange will need to pay 1500 in one ...View the full answer
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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