Assume you invest $5,000 today in an investment that promises to return $9,000 in exactly 10 years.
Question:
a. Use the present value technique to estimate the yield on this investment.
b. If a minimum return of 9% is required, would you recommend this investment?
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Step by Step Answer:
The present value is 5000 The value in 10 years will be 9000 a Using present value the ...View the full answer
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Sandhya Sharma
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
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Related Book For 
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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