Investment End of Year A B C 1 $ 13,000 $ 18,000 2 13,000 3 13,000 4 13,000 5 13,000 $ 13,000 6 13,000 54,000 7 13,000 8 13,000 9 13,000 10 13,000 18,000 Assuming an annual discount rate of 23 percent, find the present value of each investment. a. What is the present value of investment A at an annual discount rate of 23 percent? b. What is the present value of investment B at an annual discount rate of 23 percent? c. What is the present value of investment C at an annual discount rate of 23 percent?
Investment End of Year A B C 1 $ 13,000 $ 18,000 2 13,000 3 13,000 4 13,000 5 13,000 $ 13,000 6 13,000 54,000 7 13,000 8 13,000 9 13,000 10 13,000 18,000 Assuming an annual discount rate of 23 percent, find the present value of each investment. a. What is the present value of investment A at an annual discount rate of 23 percent? b. What is the present value of investment B at an annual discount rate of 23 percent? c. What is the present value of investment C at an annual discount rate of 23 percent?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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Investment
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End of Year
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A
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B
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C
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1
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$
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13,000
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$
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18,000
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2
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13,000
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3
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13,000
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4
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13,000
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5
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13,000
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$
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13,000
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6
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13,000
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54,000
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7
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13,000
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8
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13,000
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9
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13,000
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10
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13,000
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18,000
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Assuming an annual discount rate of
present value of each investment.
23
percent, find the a. What is the present value of investment A at an annual discount rate of 23 percent?
b. What is the present value of investment B at an annual discount rate of 23 percent?
c. What is the present value of investment C at an annual discount rate of 23 percent?
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