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 | $ | 2,000 | $ | 1,000 | $ | 6,000 | |||
| 2 | 3,000 | 1,000 | 6,000 | ||||||
| 3 | 4,000 | 1,000 | (6,000) | ||||||
| 4 | (5,000) | 1,000 | (6,000) | ||||||
| 5 | 5,000 | 3,000 | 16,000 | ||||||
What is the present value of each of these three investments if the appropriate discount rate is 14 percent?
a.What is the present value of investment A at an annual discount rate of 14 percent? (Round to the nearest cent.)
b. what is the present value of investment B at an annual discount rate of 14%?
C. what is the present value of investment C at an annual discount rate of 14%
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Financial Planning & Analysis And Performance Management
Authors: Jack Alexander
1st Edition
1119491487, 9781119491484
