Ahmad is considering an investment where he will receive a series of 10 annual cash flows of RM1,000 each. Assuming his required return is 8% per annum, what is the maximum amount he is willing to pay for this investment if the first cash flow occurs: - today - At the end of year 4?

Answer rating: 100% (QA)

To calculate the maximum amount Ahmad is willing to pay for this investment we need to calculate the present value of the future cash flows using the ... View the full answer