You have the opportunity to purchase a social media business at a cost of $5000 today (cash out). In return for this investment, you will receive a payment of $1000 in one year's time, $2000 in two years' time, and $3000 in three years' time. What is the present value of this business opportunity if the interest rate is 6% per year?

Answer rating: 100% (QA)

To calculate the present value of the social media business opportunity we need to discount th... View the full answer