What single investment made today

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Reference no: EM131960962

Problem

Present value concept Answer each of the following questions.

a. What single investment made? today, earning 15?% annual? interest, will be worth ?$5,900 at the end of 6 ?years?

b. What is the present value of ? $5,900 to be received at the end of 6 years if the discount rate is 15?%?

c. What is the most you would pay today for a promise to repay you $5,900 at the end of 6 years if your opportunity cost is 15?%?

d. Compare, contrast, and discuss your findings in part a through c.

Reference no: EM131960962

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