Question
You are given three investment alternatives to analyze. The cash flows from these three investments are asfollows: End of Year A B C 1 $3,000
You are given three investment alternatives to analyze. The cash flows from these three investments are asfollows:
End of Year A B C
1 $3,000 $1,000 $5,000
2 4,000 1,000 5,000
3 5,000 1,000 (5,000)
4 -6,000 1,000 (5,000)
5 6,000 3,000 15,000
What is the present value of each of these three investments if the appropriate discount rate is 16 percent?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
