Explains about choosing an investment

Reference no: EM13827025

Problem:

If you require a 12 percent return on your investment, which would you prefer? You must quantitatively support your answer.

a. Present value of $8,000 today

b. Present value of $15,000 received in 5 years at 12%

c. Present value of a 15 year, $1,000 annuity at 12%

Summary of question:

This question basically belongs to Finance as well as it explains about choosing an investment which can yield 12% return upon the investment. Computations for the above details have been given in the solution.

Reference no: EM13827025

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