Hi expart Provide solution A lender is promised a $100 payment (includinginterest) one year from today. If the lender has an8% opportunity cost of money, he should be willingto accept what amount today?A. $100.00B. $108.20C. $92.59D. $96.40

Plugging in the values: Present Value = $100 / (1 + 0.08)^1 = $100 / 1.08 = $92.59 Therefore, the…

Answered: A lender is promised a $100 payment…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

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A lender is promised a $100 payment (including interest) one year from today. If the lender has an 8% opportunity cost of money, he should be willing to accept what amount today? A. $100.00 B. $108.20 C. $92.59 D. $96.40