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Investment #1 pays you $100 at the end of each year for the next 10 years. Investment #2 pays you nothing for the first
Investment #1 pays you $100 at the end of each year for the next 10 years. Investment #2 pays you nothing for the first four years, and then $200 at the end of each year for the next six years. (a) Calculate the present value of each investment if the interest rate is 5%. Which one has a higher present value? (b) Which investment has the greater present value at an interest rate of 15%?
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To calculate the present value of each investment we need to discount the future cash flows to their ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
