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How much would pay someone today to be able to receive

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Reference no: EM132652259

Question 1: Would you pay $6,000 today to get $900 in each of the next in 10 years if your opportunity cost of capital is 7%?

Option 1: Yes, because $6,000 today is less than $12,435 in 10 years

Option 2: Yes, because $6,000 today is less than $9,000 today

Option 3: Yes, because $6,000 today is less than $6,321 today

Option 4: No, because $6,000 today less than $12,435 in 10 years

Question 2: How much would you pay someone today to be able to receive $100,000 in eight years? Your opportunity cost of capital is 7%.

Option 1: $58,201

Option 2: $597,130

Option 3: $171,819

Option 4: $58,349

Reference no: EM132652259

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