(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are shown in the popup window:. Assuming a discount rate of 16 percent, find the present value of each investment. a. What is the present value of investment A at 16 percent annual discount rate? (Round to the nearest cent.) b. What is the present value of investment B at 16 percent annual discount rate? $(Round to the nearest cent.) c. What is the present value of investment C at 16 percent annual discount rate? (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) INVESTMENT B END OF YEAR 1 2 3 4 5 6 7 8 9 10 A $19,000 19,000 19,000 19,000 19,000 $19,000 19,000 19,000 19,000 19,000 19,000 C $19,000 95,000 19,000 - X
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are shown in the popup window:. Assuming a discount rate of 16 percent, find the present value of each investment. a. What is the present value of investment A at 16 percent annual discount rate? (Round to the nearest cent.) b. What is the present value of investment B at 16 percent annual discount rate? $(Round to the nearest cent.) c. What is the present value of investment C at 16 percent annual discount rate? (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) INVESTMENT B END OF YEAR 1 2 3 4 5 6 7 8 9 10 A $19,000 19,000 19,000 19,000 19,000 $19,000 19,000 19,000 19,000 19,000 19,000 C $19,000 95,000 19,000 - X
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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Please show Clear Answers and Negative (-) Amount if it includes one.
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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 shown in the popup window:. Assuming a discount rate of 16
percent, find the present value of each investment.
a. What is the present value of investment A at 16 percent annual discount rate?
$ (Round to the nearest cent.)
b. What is the present value of investment B at 16 percent annual discount rate?
(Round to the nearest cent.)
c. What is the present value of investment C at 16 percent annual discount rate?
(Round to the nearest cent.)
$
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
INVESTMENT
B
END OF YEAR
1
2
3
4
5
6
7
8
9
10
A
$19,000
19,000
19,000
19,000
19,000
$19,000
19,000
19,000
19,000
19,000
19,000
с
$19,000
95,000
19,000
X
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