(Present-value comparison) You are offered $1,100 today, $8,000 in 9 years, or $33,000 in 24 years....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(Present-value comparison) You are offered $1,100 today, $8,000 in 9 years, or $33,000 in 24 years. Assuming that you can earn 12 percent on your money, which offer should you choose? a. What is the present value of $33,000 in 24 years discounted at 12 percent interest rate? $ (Round to the nearest cent.) (Present-value comparison) You are offered $1,100 today, $8,000 in 9 years, or $33,000 in 24 years. Assuming that you can earn 12 percent on your money, which offer should you choose? a. What is the present value of $33,000 in 24 years discounted at 12 percent interest rate? $ (Round to the nearest cent.)
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
In the Akerlof example, the individuals are treated as indifferent to risk. What would you expect to see in these markets if individuals wanted to avoid risk? What if there were some risk lovers?
-
The statement of cash flows provides information about changes in the structure of a firms assets and sources of financing. Explain.
-
1. Don't require Spitzer "connectors" to reveal their affiliation with the corporate word-of-mouth marketing campaign. They don't have to recommend a product they don't believe in. 2. Require that...
-
Channey Corporation was organized on July 1. The company's charter authorizes 100,000 shares of \(\$ 2\) par value common stock. On August 1 , the attorney who helped organize the corporation...
-
Find the present value of the streams of cash flows shown in the following table. Assume that the firms opportunity cost is12%. Year Cash flow Year Cash flow Year Cash flow $2,000 3,000 4,000 6,000...
-
Brothers has decided to sell the machine. (Credit account titles are automatical indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a)...
-
KZ Trading Co. budgeted merchandise purchases of 40,000 units next month. The expected beginning inventory is 12,000 units and the desired inventory at the end of next month is 15,000 units. Budgeted...
-
Describe the various types of chips produced during metal machining.
-
Explain the two systems of designating a cutting tool.
-
What are the advantages of a planer ?
-
What is the use of chip breakers ?
-
What feature of manufacturing planning and control systems operates under the premise that the planned work input to a work center should never exceed the planned work output?
-
You are the portfolio manager of a large company that invests in many securities including corporate bonds. You have been assigned the task of bond portfolio management. You are provided with the...
-
Starr Co. had sales revenue of $540,000 in 2014. Other items recorded during the year were: Cost of goods sold ..................................................... $330,000 Salaries and wages...
-
In 1989, PepsiCo Inc. acquired three international franchise-food operationsPizza Hut, Taco Bell, and Kentucky Fried Chicken. PepsiCo paid an aggregate of \($3.4\) billion for the three businesses,...
-
Both trading and available-for-sale accounting methods are considered mark-to-market accounting for investments. Describe their similarities and differences. Which of the two methods do you think...
-
In 2006, CKX, Inc., a New York sports entertainment company, paid \($50\) million for an 80 percent ownership interest in G.O.A.T. LLC. (G.O.A.T. stands for Greatest of All Time and is a business...
Study smarter with the SolutionInn App