Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as Investment End of Year $ 2,000 3,000 4,000 (5,000) 5,000 (Click on the icon in order to copy its contents into a spreadsheet.) $1,000 $ 4,000 1,000 4,000 1,000 (4,000) (4,000) 14,000 4 1,000 4,000 What is the present value of each of these three investments if the appropriate discount rate is 14 percent? a. What is the present value of investment A at an annual discount rate of 14 percent? (Round to the nearest cent.)
Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as Investment End of Year $ 2,000 3,000 4,000 (5,000) 5,000 (Click on the icon in order to copy its contents into a spreadsheet.) $1,000 $ 4,000 1,000 4,000 1,000 (4,000) (4,000) 14,000 4 1,000 4,000 What is the present value of each of these three investments if the appropriate discount rate is 14 percent? a. What is the present value of investment A at an annual discount rate of 14 percent? (Round to the nearest cent.)
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
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Transcribed Image Text:(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as fo
Investment
End of Year
C
$ 2,000
$1,000
$4,000
2.
3,000
1,000
4,000
4,000
1,000
(4,000)
(4,000)
14,000
4
(5,000)
1,000
5,000
(Click on the icon in order to copy its contents into a spreadsheet.)
4,000
What is the present value of each of these three investments if the appropriate discount rate is 14 percent?
a. What is the present value of investment A at an annual discount rate of 14 percent?
%24
(Round to the nearest cent.)
%24
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