Question
Company A offers to pay you $5,000 per year for nine years, whereas Company B offers to pay you $7,000 per year for five years.
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Company A offers to pay you $5,000 per year for nine years, whereas Company B offers to pay you $7,000 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 23 percent?
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
