Your grandfather has offered you a choice of one of the three alternatives Option 1 Option
Fantastic news! We've Found the answer you've been seeking!
Question:
Your grandfather has offered you a choice of one of the three alternatives
| Option 1 | Option 2 | Option 3 |
| $5000 today | $1000 a year for eight years | $12000 at the end of eighth year. |
a.Assume you can earn 11% annually which option you will choose.
b.Assume you can earn 12% annually which option you will choose.
Expert Answer:
To determine which option you should choose we need to calculate the present value PV of each alternative given different annual interest rates The pr... View the full answer
Posted Date:
