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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa71c3c67-b09e-46a1-95f7-1cf3dfb2d8e7%2F95db0c71-906c-406b-bbb9-e1324ba9fe90%2Fqnha74t_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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