5. Present Values. Would you rather receive $1,000 per year for 10 years or $800 per year for 15 years if a. the interest rate is 5%? (O LO3) b. the interest rate is 20%? ( LO3) c. Why do your answers to parts (a) and (b) differ?

5. Present Values. Would you rather receive $1,000 per year for 10 years or $800 per year for 15 years if a. the interest rate is 5%? (O LO3) b. the interest rate is 20%? ( LO3) c. Why do your answers to parts (a) and (b) differ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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6. Present Values. Would you rather receive $1,000 per year for 10 years or $800 per year for 15 years if
a. the interest rate is 5%? (O LO3)
b. the interest rate is 20%? (L LO3)
c. Why do your answers to parts (a) and (b) differ?

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