An investment will pay you $80,000 in six years. If the appropriate discount rate is 6 percent
Question:
An investment will pay you $80,000 in six years. If the appropriate discount rate is 6 percent compounded daily, what is the present value?
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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For this problem we simply need to find the PV of a lump sum using the equation PV FV 1 r ...View the full answer
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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