Question
Please help with these couple of financial accounting problem: You are offered an investment that will pay $24,000 per year for 7 years. If you
Please help with these couple of financial accounting problem:
You are offered an investment that will pay $24,000 per year for 7 years. If you feel that the appropriate discount rate is 11%, what is the investment worth to you today?
You have a rich uncle who has offered you some money upon successfully completing your accounting course. Assuming an annual interest rate of 8%, which alternative should you choose? Show your work for each alternative
$30,000 now
$6,000 a year for 6 years, with the first payment at the end of the first year
$4,000 a year for 5 years with the first payment made at the end of year 1, and then $19,000 at the end of the 6th year.
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