Tom Alexander has an opportunity to purchase any of the investments shown in the following table, price single yr cash flow yr of receipt a$7,500 $14,615 6 b$225 $1,514 21 c$1,425 $4,472 11 d$375 $16,972 41 . The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ (Round to the nearest cent.) The present value of Investment B is $ (Round to the nearest cent.) The present value of Investment C is $ (Round to the nearest cent.) The present value of Investment D is $ (Round to the nearest cent.) Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments?
Tom Alexander has an opportunity to purchase any of the investments shown in the following table, price single yr cash flow yr of receipt a$7,500 $14,615 6 b$225 $1,514 21 c$1,425 $4,472 11 d$375 $16,972 41 . The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ (Round to the nearest cent.) The present value of Investment B is $ (Round to the nearest cent.) The present value of Investment C is $ (Round to the nearest cent.) The present value of Investment D is $ (Round to the nearest cent.) Which purchase recommendations would you make, assuming that Tom can earn 10% on his 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
Problem 1PS
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Tom Alexander has an opportunity to purchase any of the investments shown in the following table,
price single yr cash flow yr of receipt
a$7,500 $14,615 6
b$225 $1,514 21
c$1,425 $4,472 11
d$375 $16,972 41
.b$225 $1,514 21
c$1,425 $4,472 11
d$375 $16,972 41
The present value of Investment A is
$
(Round to the nearest cent.)The present value of Investment B is
$
(Round to the nearest cent.)The present value of Investment C is
$
(Round to the nearest cent.)The present value of Investment D is
$
(Round to the nearest cent.)Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments?
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