Question
1.You're offered a choice of one of the three following alternatives: $5,000 now; $1,000 a year for eight years; or $12,000 at the end of
1.You're offered a choice of one of the three following alternatives:
$5,000 now; $1,000 a year for eight years; or $12,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative would you choose? If you could earn 12 percent annually, would you still choose the same alternative?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
