Your father offers you a choice of $120,000 in 13 years or $47,000 today. Use Appendix B

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Your father offers you a choice of $120,000 in 13 years or $47,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a-1. If money is discounted at 8 percent, what is the present value of the $120,000?

b-1. Now assume the offer is $120,000 in 10 years or $47,000 today. What is the present value of the $120,000 at 8 percent for 10 years?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Posted Date: Aug 15, 2020 11:01 AM

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Your father offers you a choice of $120,000 in 13 years or $47,000 today. Use Appendix B

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Present value Principal1rn rrate of interest 8 Period ... View the full answer

Foundations of Financial Management

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