Question: Example 9 : You are offered an investment that will pay you $200 in one year, $400 the second year, $600 the third year, and

Example 9: You are offered an investment that will pay you $200 in one year, $400 the second year, $600 the third year, and $800 at the end of the last year. You can earn 12% on very similar investments. What is the most you should pay (PV) for this one?

Example 10: Investment A pays $100 per year for three years. Investment B pays $80 per year for four years. Which investment would you choose if the discount rate is 10% and why?.

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