Discussion the present value

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Reference no: EM131976234

Your father offers you a choice of $120,000 in 13 years or $47,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a-1. If money is discounted at 8 percent, what is the present value of the $120,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present Value:

b-1. Now assume the offer is $120,000 in 10 years or $47,000 today. What is the present value of the $120,000 at 8 percent for 10 years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present Value:

Reference no: EM131976234

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