Solution-Concept of time value of money

Concept of time value of money

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Raul needs to choose one alternative from the four alternatives given below. Applying the concept of time value of money, which of the following alternatives should he select?

Receiving $130 at the end of two years at an interest rate of 8% compounded annually
Receiving $100 at the end of two years at an interest rate of 9% compounded annually
Receiving $90 at the end of one year at an interest rate of 5% compounded annually
Receiving $150 at the end of three years at an interest rate of 7% compounded annually

Reference no: EM131411805

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Concept of time value of money

Reference no: EM131411805

Reference no: EM131411805

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