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Given the following two sets of cash flows: Option A: $14,833.92 in 2 years plus $Y in 8 years time. Option B: $65,135.50 11 years
Given the following two sets of cash flows: Option A: $14,833.92 in 2 years plus $Y in 8 years time. Option B: $65,135.50 11 years from today. The nominal rate i(t) = 8.388% makes the present value of these two options the same. What is the value of Y? O a. $26,559.76 Ob. $27,101.80 OC. $26,830.78 O d. $27,914.85 O e. $27,372.82 Certainty : OC=1 (Unsure: 67%) OC=3 (Quite sure: >80%)
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