You are valuing an investment that will pay you nothing the first two years, $19,000 the third year, $21,000 the fourth year, $25,000 the fifth year, and $31,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you now if the appropriate annual discount rate is 5.00%? $106,867.26 $59,439.73 $96,000.05 $87,517.77 $76,410.50
You are valuing an investment that will pay you nothing the first two years, $19,000 the third year, $21,000 the fourth year, $25,000 the fifth year, and $31,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you now if the appropriate annual discount rate is 5.00%? $106,867.26 $59,439.73 $96,000.05 $87,517.77 $76,410.50
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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Transcribed Image Text:You are valuing an investment that will pay you nothing the first two years, $19,000
the third year, $21,000 the fourth year, $25,000 the fifth year, and $31,000 the sixth
year (all payments are at the end of each year). What is the value of the investment
to you now if the appropriate annual discount rate is 5.00%?
$106,867.26
$59,439.73
$96,000.05
$87,517.77
$76,410.50
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