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(Related to Checkpoint 5.4) (Present-value comparison) You are offered $120,000 today or $400,000 in 15 years. Assuming that you can earn 12 percent on
(Related to Checkpoint 5.4) (Present-value comparison) You are offered $120,000 today or $400,000 in 15 years. Assuming that you can earn 12 percent on your money, which should you choose? If you are offered $400,000 in 15 years and you can earn 12 percent on your money, what is the present value of $400,000? (Round to the nearest cent.)
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
