INVESTMENT END OF YEAR A B C 1 $14,000 $14,000 2 14,000 3 14,000 4 14,000...
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INVESTMENT |
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END OF YEAR |
A |
B |
C |
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|
1 |
$14,000 |
$14,000 |
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2 |
14,000 |
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|
3 |
14,000 |
|||
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4 |
14,000 |
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|
5 |
14,000 |
$14,000 |
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|
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6 |
14,000 |
70,000 |
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|
7 |
14,000 |
|||
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8 |
14,000 |
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9 |
14,000 |
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10 |
14,000 |
14,000 |
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What is the present value of investment A at a 23 percent annual discount rate?
Homework Answers
Solution
The present value of investment A at a 23 percent annual discount rate = $ 39248.62
= $ 39249 [ when rounded off to the nearest whole number ]
The present value of investment B at a 23 percent annual discount rate = $ 18913.98
= $ 18914 [ when rounded off to the nearest whole number ]
The present value of investment C at a 23 percent annual discount rate = $ 21981.05
= $ 21981 [ when rounded off to the nearest whole number ]
Please find the attached screenshots of the excel sheet containing the detailed calculations for the solution.
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INVESTMENT
END OF YEAR
A
B
C
1
$14,000
$14,000
2
14,000
3
14,000
4
14,000...
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