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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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/((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)
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