Present Value of the aforementioned cash flow stream is equal to the sum of the individual cash flows discounted at the given interest rate.
Therefore, total present value = 200 / 1.1 + 400 / (1.1)^(2) + 600 / (1.1)^(3) + 800 / (1.1)^(4) = $ 1509.596 ~ $ 1509.6
Hence, the correct option is (a).
You are offered an investment that will pay you S200 in year 1 $400 in year...
1. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the next year and $800 at the end of the next year. You can earn 10 percent on very similar investments. What is the most you should pay for this one?
You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
5 points sa You are offered an investment that will pay 51,120 at the end of year 1. pay $1,460 at the end of year 2, and pay $1994 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
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Question 8 5 points Save Answ You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
#stion 23 5 points Saw You are offered an investment that will pay $1.120 at the end of year 1. pay $1,460 at the end of year 2, and pay 51,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment? Moving to another question will save this response. is Question 23 of
An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $800 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value? Round your answer to the nearest cent. What is its future value? Round your answer to the nearest cent.
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