Would you rather receive $ 1,000 a year for 10 years or $800 a year for 15

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Would you rather receive $ 1,000 a year for 10 years or $800 a year for 15 years if the interest rate is 5%? What if the interest rate is 20%?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:09 AM

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Would you rather receive $ 1,000 a year for 10 years or $800 a year for 15

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You should compare the present values of the two annuities ...View the full answer

Fundamentals of Corporate Finance

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