You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 4 years; starting at the following year, an amount of $2, 000 per year until year 14; and after that year, an amount of $9, 000 per year until year 20. If your required rate of return (APR) is 11% compounded annually, what is the present value today of these cash flows?
You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 4 years; starting at the following year, an amount of $2, 000 per year until year 14; and after that year, an amount of $9, 000 per year until year 20. If your required rate of return (APR) is 11% compounded annually, what is the present value today of these cash flows?
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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You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 4 years; starting at the following year, an amount of $2, 000 per year until year 14; and after that year, an amount of $9, 000 per year until year 20. If your required
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