An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value of this investment is: O a. $19,639.28 O b. $13,323.26 O c. $7,317.16 O d. $9,666.46 e. $4,762.53

An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value of this investment is: O a. $19,639.28 O b. $13,323.26 O c. $7,317.16 O d. $9,666.46 e. $4,762.53

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your
opportunity cost is 8% compounded semi-annually. The present value of this
investment is:
O a. $19,639.28
O b. $13,323.26
O c. $7,317.16
O d. $9,666.46
Oe. $4,762.53

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