Question
Assuming a discount rate of 6 percent, which of the following has the highest cash value (present value at the date of purchase)? Assume all
Assuming a discount rate of 6 percent, which of the following has the highest cash value (present value at the date of purchase)? Assume all purchase options below are as at the same date. There will be a single cash flow for all of the alternatives (balloon payments at the end of the financing period).
| a. | $60,000 today | |
| b. | $120,000 in 8 years | |
| c. | $90,000 in 3 years | |
| d. | $100,000 in 5 years |
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Corporate Finance With Powerweb
Authors: Stephen A. Ross
6th Edition
9780072503630
