2 A hedge fund manager requires 10% minimum return for all their investments. An opportunity presents to get $1,000,000 in three years. What is the maximum price that the hedge fund manager should be willing to pay for this investment? O $753,314.8 O $749,314.8 O $756,314.8 O $751,314.8
2 A hedge fund manager requires 10% minimum return for all their investments. An opportunity presents to get $1,000,000 in three years. What is the maximum price that the hedge fund manager should be willing to pay for this investment? O $753,314.8 O $749,314.8 O $756,314.8 O $751,314.8
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 9P
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Hi I need the answer to this question thanks?
![A hedge fund manager requires 10% minimum return for all their investments. An opportunity presents to get $1,000,000 in three years. What is the maximum price that the
hedge fund manager should be willing to pay for this investment?
$753,314.8
$749,314.8
$756,314.8
$751,314.8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19dd9b63-8d8b-4f0c-b81d-c347390fb960%2F23d210cf-8c89-4196-b6ed-2279d3656618%2F5wjh8om_processed.png&w=3840&q=75)
Transcribed Image Text:A hedge fund manager requires 10% minimum return for all their investments. An opportunity presents to get $1,000,000 in three years. What is the maximum price that the
hedge fund manager should be willing to pay for this investment?
$753,314.8
$749,314.8
$756,314.8
$751,314.8
Expert Solution
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The maximum amount fund manager should be willing to pay for this investment is the present value of future cashflows
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