You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 3,000 $ 1,000 $ 5,000 2 4,000 1,000 5,000 3 5,000 1,000 (5,000) 4 (6,000) 1,000 (5,000) 5 6,000 5,000 15,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 14 percent? Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 14 percent? $ enter your response here (Round to the nearest cent.)
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 3,000 $ 1,000 $ 5,000 2 4,000 1,000 5,000 3 5,000 1,000 (5,000) 4 (6,000) 1,000 (5,000) 5 6,000 5,000 15,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 14 percent? Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 14 percent? $ enter your response here (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
Related questions
Question
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
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Investment |
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|
|
|
|
|
|
|
|
End of Year |
A |
|
|
B |
|
C |
|
|
|
|
1 |
$ |
3,000 |
|
$ |
1,000 |
$ |
5,000 |
|
|
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2 |
|
4,000 |
|
|
1,000 |
|
5,000 |
|
|
|
3 |
|
5,000 |
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|
1,000 |
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(5,000) |
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|
|
4 |
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(6,000) |
|
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1,000 |
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(5,000) |
|
|
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5 |
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6,000 |
|
|
5,000 |
|
15,000 |
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|
(Click on the icon in order to copy its contents into a spreadsheet.)
What is the present value of each of these three investments if the appropriate discount rate is
14 percent?
Question content area bottom
Part 1
a. What is the present value of investment A at an annual discount rate of
14 percent?
$
enter your response here
(Round to the nearest cent.)
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