An investment promises to pay $3,500 per year for the next three years and then $4,000 per year for the following two years. Assume a discount rate of 15% per year, how much should you pay for this investment Select one: a. $12,267 b. $9,700 c. $7,899 d. $9,500.00

An investment promises to pay $3,500 per year for the next three years and then $4,000 per year for the following two years. Assume a discount rate of 15% per year, how much should you pay for this investment Select one: a. $12,267 b. $9,700 c. $7,899 d. $9,500.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Question

Select one:

a. $12,267

b. $9,700

c. $7,899

d. $9,500.00

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