Question
Suppose you consider the purchase of an investment that promises to pay the following payments Years from now Expected Cash-flows 1 300 2 450 3
Suppose you consider the purchase of an investment that promises to pay the following payments
| Years from now | Expected Cash-flows |
|---|---|
| 1 | 300 |
| 2 | 450 |
| 3 | 650 |
| 4 | 870 |
| 5 | 980 |
| 6 | 900 |
| 7 | 700 |
| 8 | 550 |
What is the present value of such an investment if you are requiring 7.5% annual interest rate?
Select one:
a. 4,219
b. 3,084
c. 5,831
d. 3,839
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Foundations Of Financial Management
Authors: Stanley Block
8th Canadian Edition
0070965447, 9780070965447
