* You are offered the choice between receiving X dollars light years from now or receiving $400.00 dollars each year for each of the next three years. If the expected interest rate is 5% yearly, what is the minimum value for y that would make the first alternative desirable?
* You are offered the choice between receiving X dollars light years from now or receiving $400.00 dollars each year for each of the next three years. If the expected interest rate is 5% yearly, what is the minimum value for y that would make the first alternative desirable?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 5P
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