ou invest $1,400 today and expect to sell your investment for $3,200 in 10 years.   a-1. Calculate the present value of the future payoff, if the interest rate is 8%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Is this a good deal? b-1. Calculate the present value, if the interest rate is 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. Is this a good deal?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...
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ou invest $1,400 today and expect to sell your investment for $3,200 in 10 years.

 

a-1. Calculate the present value of the future payoff, if the interest rate is 8%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a-2. Is this a good deal?

b-1. Calculate the present value, if the interest rate is 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. Is this a good deal?

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