Shahrul is considering an investment that will generate cash flows of RM800 in the first year, RM500 in the second year, RM400 in the third year, and RM700 in the fourth year. His possible interest rate is 10 percent. What is the maximum amount he should be willing to pay for his investment? Answer O RM1852.52 O RM1919.10 O RM1959.52 O RM1724.32

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter5: Time Value Of Money
Section: Chapter Questions
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# 26
Shahrul is considering an investment that will generate cash flows of RMB00 in the first year, RM500 in the second year, RM400 in the third year, and RM700 in
the fourth year. His possible interest rate is 10 percent. What is the maximum amount he should be willing to pay for his investment?
Answer
O RM1852.52
O RM1919.10
O RM1959 52
O RM1724.32
Transcribed Image Text:# 26 Shahrul is considering an investment that will generate cash flows of RMB00 in the first year, RM500 in the second year, RM400 in the third year, and RM700 in the fourth year. His possible interest rate is 10 percent. What is the maximum amount he should be willing to pay for his investment? Answer O RM1852.52 O RM1919.10 O RM1959 52 O RM1724.32
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