You invest in a project that will pay you $500 per year for 5 years and...
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You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years (assume that all payments are made at the end of the year). You require a 6% rate of return on this type of investment. Give your return requirement, what is the maximum amount that you would be willing to pay today for the cash flow stream associated with this project? Round only your final answer to the closest dollar. O $5,344 $6,839 $8,750 $5,444 $6,231 You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years (assume that all payments are made at the end of the year). You require a 6% rate of return on this type of investment. Give your return requirement, what is the maximum amount that you would be willing to pay today for the cash flow stream associated with this project? Round only your final answer to the closest dollar. O $5,344 $6,839 $8,750 $5,444 $6,231
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Answer rating: 100% (QA)
The option 5 is the right option Explanation Present value of cash flows annual payment ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
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