Given the following two sets of cash flows: Option A: $45,214.49 in 2 years plus $48,903.99 in 7 years time. Option B: $87,489.61 one year from today. Which of these values for ¡(365) makes the present value of these two options the same? O a. O b. 1.984% O c. O d. 2.088% O e. 2.108% 1.943% 2.067% Certainty: OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC-3 (Quite sure: >80%)

Given the following two sets of cash flows: Option A: $45,214.49 in 2 years plus $48,903.99 in 7 years time. Option B: $87,489.61 one year from today. Which of these values for ¡(365) makes the present value of these two options the same? O a. O b. 1.984% O c. O d. 2.088% O e. 2.108% 1.943% 2.067% Certainty: OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC-3 (Quite sure: >80%)

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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