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Time value comparisons of single amounts Personal Finance Problem In exchange for a $23,000 payment today, a well-known company will allow you to choose one
Time value comparisons of single amounts Personal Finance Problem In exchange for a $23,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table: Your opportunity cost is 9%. Data Table a. Find the value today of each alternative. b. Are all the alternatives acceptable-that is, worth at least $23,000 today? c. Which alternative, if any, will you take? (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. The present value of Alternative A is S (Round to the nearest cent.) The present value of Alternative B is (Round to the nearest cent.) Alternative Single amount $27,500 at the end of 3 years The present value of Alternative C is $ (Round to the nearest cent.) $57,500 at the end of 9 yearS $193,000 at the end of 20 years b. Are all the alternatives acceptable -that is, worth at least $23,000 today? (Select the best answer below.) No Print Done Yes c. Which altemative, if any, will you take? (Select the best answer below.) O A. Alternative C O B. Alternative A O C. None O D. Alternative B Click to select your answer(s)
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