4.14 Your aunt owns an auto dealership. She promised to give you $3,000 in trade-in value for...

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4.14 Your aunt owns an auto dealership. She promised to give you $3,000 in trade-in value for your car when you graduate one year from now, while your roommate offered you

$3,500 for the car now. The prevailing interest rate is 12 percent. If the future value of benefit from owning the car for one year is expected to be $1,000, should you accept your aunt’s offer?

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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