Daniel just inherited some farmland he wants to sell. Buyer 1 is offering $60,000, but wants Daniel to keep the land for 5 years before they can pay him for the land. Buyer 2 is offering $40,000 to buy the land today. Based on a 7.5% discount rate, what is the present value of Buyer 1's offer? Which offer should Daniel take?  

Answer rating: 100% (QA)

Present value PV is a concept in finance that calculates what the future cash flow is worth in today... View the full answer