Calculate the present value of each investment

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Reference no: EM13333466

frank Zanca is considering three different investments that his broker has offered to him. the different cash flows are as follows:

end of the year    A B C

      A          B                 C

1/ 300                        400

2 /300

3 /300

4 /300       300           600

5               /300

6 /             300

7              /300

8             /300             600

because Frank only has enough savings for one investment, his broker has proposed the third alternative to be, accordind to his expertise, " the best in town". however, frank questions his broker and wants to calculate the present value of each investment. assuming a 15% discount rate, what is frank's best alternative?

Reference no: EM13333466

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