Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end of each of the next 5 years. He must invest $15,000 at the start of the first year and an additional $15,000 at the end of the first year. What is the present value of this investment if the interest rate is 7%? OA $14,112.09 OB-$1,732.79 OC. -$14.112.09 OD. $1,732.79
Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end of each of the next 5 years. He must invest $15,000 at the start of the first year and an additional $15,000 at the end of the first year. What is the present value of this investment if the interest rate is 7%? OA $14,112.09 OB-$1,732.79 OC. -$14.112.09 OD. $1,732.79
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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Transcribed Image Text:Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end of each of the next 5 years. He must invest $15,000 at the start of the first year and an additional $15,000 at the
end of the first year. What is the present value of this investment if the interest rate is 7%?
OA $14,112.09
OB. -$1,732.79
OC.-$14.112.09
OD. $1,732.79
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