Question
Time value comparison of single amounts: in exchange for a 20000 payment today, a well known company will allow you to choose one of the
Time value comparison of single amounts: in exchange for a 20000 payment today, a well known company will allow you to choose one of the alternative shown below. Your opportunity coast is 11% ....alternative A is 34000 at end of 3 years- alternative B is 54500 at end of 9 years.... Alternative C is 184000 at the end of 20 years. Question 1 the present value of alternative A is ..... Question 2 the present value of alternative B is.... Question 3 the present value of alternative C is ... Question 4 are all the alternatives acceptable , that is worth at least 20000 today? Question 5 which alternative if any will you take ..... A B C or none.
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