Calculate the present value of each investment

Assignment Help Financial Econometrics

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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