Alfonso bought a new hot tub today from Situation Hot Tubs. What is the present value of
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Question:
Alfonso bought a new hot tub today from Situation Hot Tubs. What is the present value of the cash flows associated with this transaction if the discount rate is 7.20 percent, he will receive a rebate of $682.00 from Situation Hot Tubs in 1 year, and he will pay $3,986.00 to Situation Hot Tubs in 5 years?
Note: the correct answer is less than zero.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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