Question
End of year A B C 1 $3,000 $3,000 $4000 2 $4000 $3,000 $4000 3 $5000 $3000 $(4,000) 4 $(6,000) $3000 $(4,000) 5 $6000 $7000
End of year A B C
1 $3,000 $3,000 $4000
2 $4000 $3,000 $4000
3 $5000 $3000 $(4,000)
4 $(6,000) $3000 $(4,000)
5 $6000 $7000 $14,000
What is the present value of each of these three investments if the appropriate discount rate is 8 percent?
A
B
C
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
