Question
You are considering three investment plans. In option A, you have to invest $8000 now and $2000 three years from now. In option B, you
You are considering three investment plans. In option A, you have to invest $8000 now and $2000 three years from now. In option B, you have to invest $5000 from now, and $5000 three years from now. In option C, you only need to invest $10000 now. In options A, you will receive six equal annual payments of $2500 each. In options B, you will receive six equal annual payments of $2800 each. In option C, you will receive six equal annual payments of $3000 each. You will get your first payment a year from now. For all questions, assume an interest rate of 10%. Use this to answer the following questions.
Question b: Fill in the blanks shown in the table below. Round your answers to the nearest integer. Net Discounted Discounted EOY CFB Net CFB Cumulative CFB 0 1 2800 2545.45 2 3 4 2800 119.05 5 6 1580.53Step by Step Solution
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