You have an investment opportunity that pays $500 every three months for 7 years and an...

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You have an investment opportunity that pays $500 every three months for 7 years and an additional $14,000 at the end of the seventh year. How much is the investment worth today if you can invest in a similarly risky project and receive an 8.5% return? You have an investment opportunity that pays $500 every three months for 7 years and an additional $14,000 at the end of the seventh year. How much is the investment worth today if you can invest in a similarly risky project and receive an 8.5% return?

Answer rating: 100% (QA)

To calculate the present value of the investment opportunity we need to discount the future cash flo... View the full answer