A business promises to pay the investor of $4,000 today for a payment of $1,000 in one year's time, $2,000 in two years' time and $2,000 in three years' time. What is the present value of this business opportunity if the interest rate is 4% per year?

Answer rating: 100% (QA)

SOLUTION The present value of this business opportunity can be calculated using the follo... View the full answer