Question
Mr. Jones has two possible buyers for his business. Buyer A will pay $10,000 immediately and another $25,000 in 7 years. Buyer B will pay
Mr. Jones has two possible buyers for his business. Buyer A will pay $10,000 immediately and another $25,000 in 7 years. Buyer B will pay $9,000 now and another $28,000 in 5 years. Which is the better offer if the interest rate is 3% compounded annually?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
