Question
Investment X offers to pay you $624 per year for 20 years, whereas Investment Y offers to pay you $401 per year for 40 years,
Investment X offers to pay you $624 per year for 20 years, whereas Investment Y offers to pay you $401 per year for 40 years, with payments for both starting one year from today. Both investments cost the same amount today. Which of these two cash flow streams should you prefer if the discount rate is 8.21 percent?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
