Question
You are given three investments alternatives to analyze. The cash flows from these three investments are as follows: End of Year A BC 1 $1,000
You are given three investments alternatives to analyze. The cash flows from these three investments are as follows:
End of Year A BC
1 $1,000 $1,000 $5,000
22,0001,000 5,000
3 3,0001,000 (5,000)
4(4,000) 1,000 (5,000)
5 4,000 3,000 15,000
What is the present value of investments A, B, and C if the appropriate discount rate is 10%?
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
