An investment will generate $9,000 a year for 20 years. If you can earn 9 percent on your funds and the investment costs $100,000, calculate the present value of investment. Use Appendix D to answer the question. Round your answer to the nearest dollar. $ Should you buy it?
An investment will generate $9,000 a year for 20 years. If you can earn 9 percent on your funds and the investment costs $100,000, calculate the
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Should you buy it?
-Select-YesNoItem 2
Calculate the present value of investment, if you could earn only 5 percent. Use Appendix D to answer the question. Round your answer to the nearest dollar.
$
Should you buy it in this case?
-Select-YesNo
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The Present Value is the current value of a future amount i.e., it is the amount to be invested today at a given rate over a fixed period of time to equal the Future Amount.
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