Question
Question 4 You inherit $554,000. You can receive the $554,000 in one lump sum payment today or, alternatively, receive two amounts: $354,000 in 11 months
Question 4
You inherit $554,000. You can receive the $554,000 in one lump sum payment today or, alternatively, receive two amounts: $354,000 in 11 months and $220,000 in 21 months from today. If you can earn 5.7% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)?
(to nearest whole dollar,; dont use $ sign or commas)
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Introductory Econometrics For Finance
Authors: Chris Brooks
3rd Edition
1107661455, 9781107661455
