Question
Jane Ire is offered a real estate investment that promises to pay $80,000 after 5 years. She feels, based on the investments riskiness, that the
Jane Ire is offered a real estate investment that promises to pay $80,000 after 5 years. She feels, based on the investments riskiness, that the annual rate of return should be 15 percent, compounded quarterly. What price should she pay for the property?
- A. $39,445.80
- B. $48,202.10
- C. $38,311.39
- D. $27,963.20
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
