Mary is considering an investment under which she would receive $50,000 in cash at the end of each Year from Year I I through Year V (total of $250,000.00) and a further $50,000 at the end of Year 10.

 

In evaluating all investment decisions, Mary utilizes a Required Rate of Return of 5%.

 

Required: What amount of cash would Mary be willing to accept today as an alternative to waiting to receive the monies as referenced above?

Answer rating: 100% (QA)

Mary considering an investment where she would receive 50000 annually from Year II through Y... View the full answer