Question
Nanda is considering putting money in an investment plan that will pay him $52,000 in 12 years. If Nanda's opportunity cost is 7 percent compounded
Nanda is considering putting money in an investment plan that will pay him $52,000 in 12 years. If Nanda's opportunity cost is 7 percent compounded annually, the maximum amount he should be willing to pay for the investment today is closest to:
| a. | $26,888 | |
| b. | $23,089 | |
| c. | $28,685 |
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
