We can make an immediate payment now of Rs 130,000 or pay equal amount of A for the 1) 2) next five years , first payment being payable after 1 year. with a time value of money of 12 per cent , what the maximum value of A we would be willing to accept? What maximum value of A we would be willing to accept if the payments are made in the beginning of the year?
We can make an immediate payment now of Rs 130,000 or pay equal amount of A for the 1) 2) next five years , first payment being payable after 1 year. with a time value of money of 12 per cent , what the maximum value of A we would be willing to accept? What maximum value of A we would be willing to accept if the payments are made in the beginning of the year?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Question
We can make an immediate payment now of Rs 130,000 or pay equal amount of A for
the 1)
2)
next five years , first payment being payable after 1 year.
with a
What maximum value of A we would be willing to accept if the payments are made in the beginning of the year?
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