Question
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year A B C 1
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
| End of Year | A | B | C |
| 1 | $2,000 | $1,000 | $4,000 |
| 2 | 3,000 | 1,000 | 4,000 |
| 3 | 4,000 | 1,000 | (4,000) |
| 4 | (5,000) | 1,000 | (4,000) |
| 5 | 5,000 | 4,000 | 14,000 |
a. What is the present value of invetment A at an annual discount rate of 15 percent? B. What is the present value of investment B at an annual discount rate of 15 percent? C. What is the present value of investment C at an annual discount rate of 15 percent?
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Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
