You have the choice of recelving $50,000 now or $20,000 now and another $35,000 three years from now In terms of today's dollar, which choice is better and by how much? Money is worth 6 6% compounded annually Which choice is better? OA They are equal in value O B. The choic. $20,000 now and $35,000 in three years is better C. The choice of $50,000 now is better
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%You have the choice of receiving $80,000 now or $30,000 now and another $56,000 two years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 5.3% compounded annually Which choice is better? OA. The choice of $80,000 now is better OB. They are equal in value OC. The choice of $30,000 now and $56,000 in two years is better The better choice is greater than the alterative choice by $in terms of today's dollar. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)K You have the choice of receiving $100,000 now or $43,000 now and another $70,000 three years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 6.5% compounded annually Which choice is better? A. They are equal in value. B. The choice of $43,000 now and $70,000 in three years is better. OC. The choice of $100,000 now is better. The better choice is greater than the alternative choice by $ in terms of today's dollar (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 0 n
- You have the choice of receiving $120,000 now or $59,000 now and another $84,000 five years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 6.3% compounded annually. Which choice is better? OA. They are equal in value. OB. The choice of $59,000 now and $84,000 in five years is better. OC. The choice of $120,000 now is better. *** The better choice is greater than the alternative choice by $ in terms of today's dollar. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)You have the choice of receiving $120,000 now, or $56,000 now and another $84,000 four years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 6.6% compounded annually. Which choice is better? OA. The choice of $120,000 now is better. OB. They are equal in value. OC. The choice of $56,000 now and $84,000 in four years is better. C... The better choice is greater than the alternative choice by $ in terms of today's dollar. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)You have the choice of receiving S90,000 now, or $47,000 now and another $63,000 six years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 6.9% compounded annually. Which choice is better? O A. The choice of $90,000 now is better. O B. The choice of $47,000 now and $63,000 in six years is better. O C. They are equal in value. The better choice is greater than the alternative choice by S in terms of today's dollar. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
- Whichoption is better: receive $160,000 now or $50,000, $25,000, $55,000, $30,000, and $40,000,respectively, over the next five years? The cash flows are at the end of each year except for$160,000.Requirements1. Assuming a 6% interest rate, which investment opportunity would you choose?2. If you could earn 10%, would your choice change?3. Assuming a 10% interest rate, what would the cash flow in year 5 have to be in order foryou to be indifferent to the two plans?You are considering in investing one of the two options: Investment A requires a $175,000 upfront payment and generates $12,000 annually, Investment B requires a $250,000 upfront payment. How much should Investment B generate annually so that the total returns from Investment A and B become equal after 25 years? O None of the others O $15,000 O $9,000 O $75,000 O $3,000Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?
- You have the opportunity to make an investment that costs $1.000,000. If you make this investment now, you will receive $250,000 one year from today, $200,000, $150,000 and $ 400,000 two and three years from today, respectively. The appropriate discount rate for this investment is 11 percent Should you make the investment? What is the net present value (NPV) of this opportunity?Your friend offers you an investment opportunity that would yield $100 per year for the next 3 years. Using a discount rate of 10%, decide whether this is a good investment opportunity. What is the present value of this investment? a. $200.05 b. $250 c. $248.68 d. 258.20Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is%. (Round to two decimal places.) b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ (Round to the nearest cent.)