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 | $ | 3,000 | $ | 1,000 | $ | 6,000 | |||
| 2 | 4,000 | 1,000 | 6,000 | ||||||
| 3 | 5,000 | 1,000 | (6,000) | ||||||
| 4 | (6,000) | 1,000 | (6,000) | ||||||
| 5 | 6,000 | 4,000 | 16,000 | ||||||
What is the present value of each of these three investments if the appropriate discount rate is 13 percent?
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Capital Failure Rebuilding Trust In Financial Services
Authors: Nicholas Morris , David Vines
1st Edition
0198712227,019102077X
