What amount of cash must be invested today in order to have $39,000 at the end of oneyear assuming the rate of return is 8%?a. $35,880.00b. $31,200.00c. $33,436.21d. $36,111.11

The balance amount at end of one year is given by,B=A(1+100r).......equation(1) Where,B is the…

Answered: What amount of cash must be invested…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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What amount of cash must be invested today in order to have $39,000 at the end of one year assuming the rate of return is 8%? a. $35,880.00 b. $31,200.00 c. $33,436.21 d. $36,111.11