An unavoidable cost may be met by outlays of $10 000 now and $2000 at the end

Question:

An unavoidable cost may be met by outlays of $10 000 now and $2000 at the end of every six months for seven years or by making monthly payments of $500 in advance for seven years. Interest is 7% compounded annually.
Compute the present value of each alternative and determine the preferred alternative according to the criterion (round off to the nearest dollar).
Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...