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Sophie wants to buy the Ever-so-Young shop around the corner. The following cash flows are involved Time in years Cash flows (R) 2 200 000 3 -500 000 7 700 000 8 850 000 9 -210 000 Sophie can borrow money at 19% per annum while she can invest at 17,5% per annum. The present value of the cash outflows is a. R340 590,94. O b. R357 407,06. ○ c. R524 888,51. O d. R535 703,05.

Sophie wants to buy the Ever-so-Young shop around the corner. The following cash flows are involved Time in years Cash flows (R) 2 200 000 3 -500 000 7 700 000 8 850 000 9 -210 000 Sophie can borrow money at 19% per annum while she can invest at 17,5% per annum. The present value of the cash outflows is a. R340 590,94. O b. R357 407,06. ○ c. R524 888,51. O d. R535 703,05.

Essentials Of Investments
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
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Sophie wants to buy the Ever-so-Young shop around the corner. The following cash flows are involved Time in years Cash flows (R) 2 200 000 3 -500 000 7 700 000 8 850 000 9 -210 000 Sophie can borrow money at 19% per annum while she can invest at 17,5% per annum. The present value of the cash outflows is a. R340 590,94. O b. R357 407,06. ○ c. R524 888,51. O d. R535 703,05.
Transcribed Image Text:Sophie wants to buy the Ever-so-Young shop around the corner. The following cash flows are involved Time in years Cash flows (R) 2 200 000 3 -500 000 7 700 000 8 850 000 9 -210 000 Sophie can borrow money at 19% per annum while she can invest at 17,5% per annum. The present value of the cash outflows is a. R340 590,94. O b. R357 407,06. ○ c. R524 888,51. O d. R535 703,05.
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