Question
Given the following two sets of cash flows: Option A: $46,527.00 in 2 years plus $Y in 12 years time. Option B: $76,632.67 6 years
Given the following two sets of cash flows: Option A: $46,527.00 in 2 years plus $Y in 12 years time. Option B: $76,632.67 6 years from today. The nominal rate i(52) = 7.447% makes the present value of these two options the same.
What is the value of Y? a. $20,747.31 b. $21,839.27 c. $20,092.13 d. $21,402.48 e. $20,965.70
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
