How would we compute the present discounted value of payments of $8,000 received threeyears in the future and $10,000 received four years in the future? The interest rate is expectedto be 5 percent for the next four years.Please choose one:O a. 8,000/((15)3) + 10,000/(1.5)4)O b.8,000/((1.05)3) +10,000/((1.05)4)Oc 8,000/(1.03) + 10,000/(104)O D 8,000/(105) +10,000/((1.05)2)

The present discounted value gives the amount of dollars that an individual is willing to invest for…

How would we compute the present discounted value of payments of $8,000 received thre years in the future and $10,000 received four years in the future? The interest rate is expec to be 5 percent for the next four years. Please choose one: O a. 8,000/((15)3) + 10,000/(1.5)4) O b.8,000/(1.05)3) + 10,000/(1.05)4) O c 8,000/(103) + 10,000/(104) D 8,000/(105)+10,000/((1.05)2)

How would we compute the present discounted value of payments of $8,000 received thre years in the future and $10,000 received four years in the future? The interest rate is expec to be 5 percent for the next four years. Please choose one: O a. 8,000/((15)3) + 10,000/(1.5)4) O b.8,000/(1.05)3) + 10,000/(1.05)4) O c 8,000/(103) + 10,000/(104) D 8,000/(105)+10,000/((1.05)2)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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