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

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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Question**: How would we compute the present discounted value of payments of $8,000 received three years in the future and $10,000 received four years in the future? The interest rate is expected to be 5 percent for the next four years. **Please choose one**: - a. \( 8,000 / ((1.5)^3) + 10,000 / ((1.5)^4) \) - b. \( 8,000 / ((1.05)^3) + 10,000 / ((1.05)^4) \) - c. \( 8,000 / ((1.03)^3) + 10,000 / ((1.04)^4) \) - d. \( 8,000 / (1.05) + 10,000 / ((1.05)^2) \)
Transcribed Image Text:**Question**: How would we compute the present discounted value of payments of $8,000 received three years in the future and $10,000 received four years in the future? The interest rate is expected to be 5 percent for the next four years. **Please choose one**: - a. \( 8,000 / ((1.5)^3) + 10,000 / ((1.5)^4) \) - b. \( 8,000 / ((1.05)^3) + 10,000 / ((1.05)^4) \) - c. \( 8,000 / ((1.03)^3) + 10,000 / ((1.04)^4) \) - d. \( 8,000 / (1.05) + 10,000 / ((1.05)^2) \)
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