How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you use the market to earn interest on the funds? $
How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you use the market to earn interest on the funds? $
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5 yearly installments of $1600, the first installment paid now. Assume a 5.8% market interest rate, compounded continuously.
How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you use the market to earn interest on the funds? $
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