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Review View ences - A Mailings E 1 1 AabCeDdEe AalbCcDdEe AaBb CCD AaBbcDde Aa Normal No Spacing Heading 1 Heading 2 Problem 3. You
Review View ences - A Mailings E 1 1 AabCeDdEe AalbCcDdEe AaBb CCD AaBbcDde Aa Normal No Spacing Heading 1 Heading 2 Problem 3. You have won an award which will be paid over the next three years. Each award will pay a total of $30,000, but they are paid in differing amounts. You have a discount rate of 12% Calculate the present value of each option. Complete the table below and show your calculations below the table. Year 1 $5,000 10,000 15,000 Year 2 Year 3 Option B $10,000 10,000 10,000 Option C $15,000 10,000 5,000 Total payments PV of payments Problem 4. For the scenario in the above problem, which option will you choose? Why? Focus
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