Emilio offers you two options: $890 today or $X in 11 years. Suppose that you are not risk averse. If the interest rate is 6 percent, then at what value of X would you be indifferent between the two options? Round your answer to the nearest two decimal place.

Given: Options: 1-$890 today 2-X in 11 years Interest rate=6% To find: Value of X

Answered: Emilio offers you two options: $890 today or $X in 11 years. Suppose that you are not risk averse. If the interest rate is 6 percent, then at what value of X…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN: 9780190931919

Author: NEWNAN

Publisher: Oxford University Press

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