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Find the value today of each alternative

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Question: Time value comparisons of single amounts Personal Finance Problem In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table: Your opportunity cost is 11%.

Alternative                Single amount

A                      $24,500 at the end of 3 years

B                      $53,000 at the end of 9 years

C                      $197,000 at the end of 20 years

a. Find the value today of each alternative.

b. Are all the alternatives acceptable long dash -that is, worth at least $20,000 today?

c. Which alternative, if any, will you take?

Reference no: EM132079983

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