Question
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
Investment
End of Year A B C 1 $1,000 $3,000 $5,000 2 2,000 3,000 5,000 3 3,000 3,000 (5,000) 4 -4,000 3,000 (5,000) 5 4,000 7,000 15,000
What is the present value of each of these three investments if the appropriate discount rate is 13 percent?
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Modeling Financial Time Series With S PLUS
Authors: Eric Zivot, Jiahui Wang
2nd Edition
0387279652, 0387323481, 9780387279657, 9780387323480
