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Present value and the future value of an asset

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Reference no: EM131970068

a) What is difference between Present Value and the future value of an asset?

b) What is meant by the opportunity cost of an item or activity? Give an example.

c) What is the maximum amount you would pay for an asset that generates an income of $ 5,000 at the end of each of the two years when the opportunity cost of using funds is 10 percent?

Instructions: Show your work and define all steps

Reference no: EM131970068

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