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You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Assuming an annual discount rate of 23
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
Assuming an annual discount rate of 23 percent, find the present value of each investment.
Part 1
a.What is the present value of investment A at an annual discount rate of 23 percent?
$__.
\begin{tabular}{lrrl} \multicolumn{4}{c}{ Investment Alternatives } \\ End of Year & A & B & C \\ 1 & $14,000 & & \\ 2 & 14,000 & & \\ 3 & 14,000 & & \\ 4 & 14,000 & & \\ 5 & 14,000 & $14,000 \\ 6 & & 14,0000 & 70,000 \\ 7 & & 14,000 & \\ 8 & & 14,000 & \\ 9 & & 14,000 & 14,000 \\ 10 & & 14,000 & \\ \hline \end{tabular}Step by Step Solution
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