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7 Assume Rafael can eam an 6 percent after-tax rate of retum. He can receive $2,000 today or $3,000 in five years. What is the
7 Assume Rafael can eam an 6 percent after-tax rate of retum. He can receive $2,000 today or $3,000 in five years. What is the present value of the $3,000 payment due in five years? QUESTION 8 Assume Ellina earns a 8 percent after-tax rate of return, and that she owes a friend $2,400. She can pay the friend $2.400 today or $3,500 in four years. What is the present value of the $3,500 payment due in four years? QUESTION 9 Jonah has the choice of paying Rita $20,000 today or $80,000 in ten years. Assume Jonah can earn a 10 percent after-tax rate of return. What is the present value of the $80,000 payment due in 10 years
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