Your company is owed a lump sum payment of $400,000 in one year. The customer that owes the money has offered to settle the account now for $390,000. If your company can earn 3% on similar investments, what is the minimum amount you would accept now as a payoff? Based just on the figures, would you accept the offer? Explain.

Answer rating: 100% (QA)

To determine the minimum amount you would accept now as a payoff we need to calculate the present va... View the full answer