Question
A business promises to pay the investor of $4,000 today for a payment of $1,000 in one year's time, $2,000 in two years' time and
A business promises to pay the investor of $4,000 today for a payment of $1,000 in one year's time, $2,000 in two years' time and $2,000 in three years' time. What is the present value of this business opportunity if the interest rate is 4% per year?
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SOLUTION The present value of this business opportunity can be calculated using the follo...
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
