Question
I'm not sure how to answer for A but is the process for B and C the same as A or are they a different
I'm not sure how to answer for A but is the process for B and C the same as A or are they a different process?
You are given three investment alternatives to analyze. The cash flows from these three investments are asfollows:
Investment Alternatives
End of Year A B C
1 $10,000 $10,000
2 10,000
3 10,000
4 10,000
5 10,000 $10,000
6 10,000 50,000
7 10,000
8 10,000
9 10,000
10 10,000 10,000
Assuming an annual discount rate of 20 percent, find the present value of each investment.
a.What is the present value of investment A at an annual discount rate of 20 percent?
b.What is the present value of investment B at an annual discount rate of 20 percent?
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