Question
You invest in a business that you expect will earn profit (in thousands of dollars) of $12 by the end the year, $17 next year,
You invest in a business that you expect will earn profit (in thousands of dollars) of $12 by the end the year, $17 next year, $25 the third year, and $30 the 4th year. Other investments of equal risk earn 5%. How much is this business worth today?
- $84.00
- None of the above
- $73.13
- $88.88
- $69.64
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Elementary Statistics Picturing The World
Authors: Ron Larson, Betsy Farber
6th Edition
0321911210, 978-0321911216
