You are considering two investment options. One will pay you $4,000 each year over eight years, starting at the end of the year. The other will pay you $3,800 each year over eight years, beginning today. The appropriate discount rate for both is 11%. 

What is the difference in value between the two options?

Answer rating: 100% (QA)

To determine the difference in value between the two options we need to calculate the present value ... View the full answer