Question
An investment fund promises to pay $1,000 in two years, then $3,000 in four years, and finally $5,000 in six years. If the market requires
An investment fund promises to pay $1,000 in two years, then $3,000 in four years, and finally $5,000 in six years. If the market requires a 6% return for similar investments, what is the fair price to pay for this fund?
| A | $7,811.48 |
| B | $9,088.00 |
| C | $6,791.08 |
| D | $7,630.46 |
| E | $7,369.32 |
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
