ou are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 2,000 $ 2,000 $ 6,000 2 3,000 2,000 6,000 3 4,000 2,000 (6,000) 4 (5,000) 2,000 (6,000) 5 5,000 6,000 16,000 a. What is the present value of investment A at an annual discount rate of 13 percent? b. What is the present value of investment B at an annual discount rate of 13 percent? c. What is the present value of investment C at an annual discount rate of 13 percent?
ou are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 2,000 $ 2,000 $ 6,000 2 3,000 2,000 6,000 3 4,000 2,000 (6,000) 4 (5,000) 2,000 (6,000) 5 5,000 6,000 16,000 a. What is the present value of investment A at an annual discount rate of 13 percent? b. What is the present value of investment B at an annual discount rate of 13 percent? c. What is the present value of investment C at an annual discount rate of 13 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
ou are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
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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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|||||
|---|---|---|---|---|---|---|---|---|
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1
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$
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2,000
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$
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2,000
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$
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6,000
|
|
|
2
|
|
3,000
|
|
|
2,000
|
|
6,000
|
|
|
3
|
|
4,000
|
|
|
2,000
|
|
(6,000)
|
|
|
4
|
|
(5,000)
|
|
|
2,000
|
|
(6,000)
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|
|
5
|
|
5,000
|
|
|
6,000
|
|
16,000
|
a. What is the
b. What is the present value of investment B at an annual discount rate of 13 percent?
c. What is the present value of investment C at an annual discount rate of 13 percent?
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