Assume that today is the end of 2022 and you have decided to start an investment plan at the end of 2026. At that time, you will invest $5,000 with this investment plan with this amount growing at a constant rate of 4% p.a. over the foreseeable future. If the interest rate appropriate for valuing your investment plan is 12% p.a. the present value of this investment plan today is closest to: $39,720. $44,486. $49,825. $62,500
Assume that today is the end of 2022 and you have decided to start an investment plan at the end of 2026. At that time, you will invest $5,000 with this investment plan with this amount growing at a constant rate of 4% p.a. over the foreseeable future. If the interest rate appropriate for valuing your investment plan is 12% p.a. the present value of this investment plan today is closest to: $39,720. $44,486. $49,825. $62,500
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13EB: Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for...
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Assume that today is the end of 2022 and you have decided to start an investment plan at the end of 2026. At that time, you will invest $5,000 with this investment plan with this amount growing at a constant rate of 4% p.a. over the foreseeable future. If the interest rate appropriate for valuing your investment plan is 12% p.a. the present value of this investment plan today is closest to:
$39,720.
$44,486.
$49,825.
$62,500
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