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Round final dollar answers to 2 decimal places. Consider the following payment options for a debt. A: $12,000 today and month-end payments of $2,000 for
Round final dollar answers to 2 decimal places. Consider the following payment options for a debt. A: $12,000 today and month-end payments of $2,000 for six months. B: $10,000 today, and $15,000 in 9 months. If Interest is 4.80% compounded monthly, compute the CURRENT economic value of each option. Referring to the?"s in the table, and considering inflows and outflows of cash, answer the questions below by entering the appropriate values in the blanks. Mode = END Option IY CY PV PMT PY FV 4.80 12 ? ? 12 ? B ? 4.80 12 ? ? 12 ? For Option A: N = A/ PV = A/ PMT = FV = A/ Current Economic Value ($) of Option A = For Option B: N = PV = A/ PMT = A I FV = AJ P] Current Economic Value ($) of Option B = Which option is preferred
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