What are the implications of a higher interest rate

Reference no: EM13268488

You expected to receive $5,000 each year for 5 years. You estimate that the proper discount rate for this investment is only 4% because there is not much risk. What is this investment worth to you in today's dollars? What is it worth if the discount rate increases to 6% because of some risk? Show your calculation. What are the implications of a higher interest rate?

Reference no: EM13268488

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