18. You will need $15,000 at the end of each of the next four years. If an interest rate of 8% is appropriate, what is the present value of the series of payments that you are forecasting? A. $44,100.00 B. $49,681.50 C. $36,230.79 D. $45,559.50

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Capital budgeting 

18. You will need $15,000 at the end of each of the next four years. If an interest rate of 8% is appropriate, what is the present value of the series of payments that you are forecasting?
A. $44,100.00
B. $49,681.50
C. $36,230.79
D. $45,559.50


20. Assume that 15% is an appropriate rate of return. What is the present value of an annuity of $300,000 per year for the next ten years?
A. $2,608,000
B. $741,600
C. $2,281,830
D. $1,505,640

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