Calculate the present value of the following: a-1. Annual payment of $1,100 for 11 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Annual payment of $900 for 16 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-3. Which option would you prefer? b-1. Annual payment of $1,100 for 11 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Annual payment of $900 for 16 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-3. Which option would you prefer? a-1. Present value a-2. Present value a-3. Which option would you prefer? b-1. Present value b-2. Present value b-3. Which option would you prefer?
Calculate the present value of the following: a-1. Annual payment of $1,100 for 11 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Annual payment of $900 for 16 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-3. Which option would you prefer? b-1. Annual payment of $1,100 for 11 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Annual payment of $900 for 16 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-3. Which option would you prefer? a-1. Present value a-2. Present value a-3. Which option would you prefer? b-1. Present value b-2. Present value b-3. Which option would you prefer?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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