Question
Sarah has an investment opportunity that promises to pay out $4,396 to her annually for five years with the first payment to be received one
Sarah has an investment opportunity that promises to pay out $4,396 to her annually for five years with the first payment to be received one year from today. If 8 percent is an appropriate discount rate to use for an investment of this risk and duration, what maximum amount should Sarah be willing to pay for it?
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Principles Of Investments
Authors: Alan Marcus, Zvi Bodie, Michael Drew, Anup Basu, Alex Kane
1st Edition
0071012389, 978-0071012386
