Which of following investments have lowest present value

Reference no: EM13294468

Which of the following investments would have the 'lowest' present value? Assume that the effective annual rate for all investments is the same and is greater than zero.

Question options:

a) Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).

b) Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10 payments).

c) Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments).

d) Investment D pays $2,500 at the end of 10 years (just one payment).

e) Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments).

Reference no: EM13294468

Questions Cloud

State what is the mole fraction of h2 in the mixture : A gas mixture contains 8.10g of N2, 1.70 g of H2, and 14.70 g of CH4. what is the mole fraction of H2 in the mixture

How much income will the grandchild receive each year : If the interest rate earned on the trust is expected to be at least 7 percent in all future periods, how much income will the grandchild receive each year?

How long does it take your deposit to triple : If your bank pays you 3% interest rate annually on your deposit, how long does it take your deposit to triple?

How to propose a mechanism for the reaction : Propose a mechanism for the following reaction. Be sure to show all the steps and the reactive intermediates

Which of following investments have lowest present value : Which of the following investments would have the 'lowest' present value? Assume that the effective annual rate for all investments is the same and is greater than zero.

Define the clo2 molecule was involved in a chemical reaction : The ClO2 molecule was involved in a chemical reaction in which it underwent oxidation. Based on the change in oxidation numbers, which of the species listed below is a possible product of the reaction

Calculate the work done by the field on the electron : A uniform electric field of magnitude 395 N/C pointing in the positive x-direction acts on an electron, What is the work done by the field on the electron

What will the dollar amount of sales be in year five : China Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the dollar amount of sales be in year five?

Explain a final volume of naoh and an initial volume : When you are trying to calculate molarity, what volume do you use? I have a final volume of NaOH and an initial Volume and volume of NaOH

User Account

All Pages