Investment End of Year A B C 1 $ 2,000 $ 1,000 $ 4,000 2 3,000 1,000 4,000 3 4,000 1,000 (4,000) 4 (5,000) 1,000 (4,000) 5 5,000 3,000 14,000 What is the present value of each of these three investments if the appropriate discount rate is 11 percent? a. What is the present value of investment A at an annual discount rate of 11 percent? b. What is the present value of investment B at an annual discount rate of 11 percent C. What is the present value of investment C at an annual discount rate of 11 percent?
Investment End of Year A B C 1 $ 2,000 $ 1,000 $ 4,000 2 3,000 1,000 4,000 3 4,000 1,000 (4,000) 4 (5,000) 1,000 (4,000) 5 5,000 3,000 14,000 What is the present value of each of these three investments if the appropriate discount rate is 11 percent? a. What is the present value of investment A at an annual discount rate of 11 percent? b. What is the present value of investment B at an annual discount rate of 11 percent C. What is the present value of investment C at an annual discount rate of 11 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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2,000
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$
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1,000
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$
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4,000
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2
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3,000
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1,000
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4,000
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|
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3
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4,000
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1,000
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(4,000)
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4
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(5,000)
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1,000
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(4,000)
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5
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5,000
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3,000
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14,000
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What is the present value of each of these three investments if the appropriate discount rate is
11
percent?a. What is the present value of investment A at an annual discount rate of
11
percent?b. What is the present value of investment B at an annual discount rate of 11 percent
C. What is the present value of investment C at an annual discount rate of 11 percent?
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