Please answer with explanation.I will really upvote. Thanks Given the following two sets of cash flows:Option A: $48,858.00 in 3 years plus $Y in 13 years time.Option B: $91,190.95 15 years from today.The nominal rate i(2) = 2.769% makes the present value of these two options the same. What is the value of Y?a. $20,888.38O b. $22,207.65O c. $21,987.77O d. $21,328.14e. $21,767.89

In this we have to make both options equal and than we can get the Y.

en the following two sets of cash flows: ion A: $48,858.00 in 3 years plus $Y in 13 years time. ion B: $91,190.95 15 years from today. nominal rate i(2) = 2.769% makes the present value of these two options the s. a. $20,888.38 b. $22,207.65 c. $21,987.77

en the following two sets of cash flows: ion A: $48,858.00 in 3 years plus $Y in 13 years time. ion B: $91,190.95 15 years from today. nominal rate i(2) = 2.769% makes the present value of these two options the s. a. $20,888.38 b. $22,207.65 c. $21,987.77

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Question

Please answer with explanation.

I will really upvote. Thanks

Given the following two sets of cash flows:
Option A: $48,858.00 in 3 years plus $Y in 13 years time.
Option B: $91,190.95 15 years from today.
The nominal rate i(2) = 2.769% makes the present value of these two options the same. What is the value of Y?
a. $20,888.38
O b. $22,207.65
O c. $21,987.77
O d. $21,328.14
e. $21,767.89

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