Question
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: What is the present value of each
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
What is the present value of each of these three investments if the appropriate discount rate is
13
percent?
| End of Year | A | B | C |
| 1 | $1,000 | $2,000 | $6,000 |
| 2 | 2000 | 2000 | 6000 |
| 3 | 3000 | 2000 | (6,000) |
| 4 | -4000 | 2000 | (6,000) |
| 5 | 4000 | 4000 | 16000 |
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Introduction To Financial Technology
Authors: Roy S. Freedman
1st Edition
0123704782, 9780123704788
