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You want to buy a piece of land for $12,000 cash. The owner would allow you to pay for it in six annual installments of
You want to buy a piece of land for $12,000 cash. The owner would allow you to pay for it in six annual installments of $2300 each, the first one right now. Which method is cheaper for you (paying in cash or in installments) if the time value of money is 12%?
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To determine which option is cheaper we need to calculate the present value of t...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
