Your truck has a market value of $60,100. You can sell it to your brother, who agreed to buy it now and pay $77,200 three years from now, or you can sell it to your cousin who agreed to pay you $66,300 at the end of the year. To whom should you sell the truck if your cost of capital is 8 percent? (Round answers to 2 decimal places, e.g. 25.25.) Cash inflow, brother $ Cash inflow, cousin $ You should sell the truck to your
Your truck has a market value of $60,100. You can sell it to your brother, who agreed to buy it now and pay $77,200 three years from now, or you can sell it to your cousin who agreed to pay you $66,300 at the end of the year. To whom should you sell the truck if your cost of capital is 8 percent? (Round answers to 2 decimal places, e.g. 25.25.) Cash inflow, brother $ Cash inflow, cousin $ You should sell the truck to your
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Your truck has a market value of $60,100. You can sell it to your brother, who agreed to buy it now and pay $77,200 three years from
now, or you can sell it to your cousin who agreed to pay you $66,300 at the end of the year. To whom should you sell the truck if your
cost of capital is 8 percent? (Round answers to 2 decimal places, e.g. 25.25.)
Cash inflow, brother
$
Cash inflow, cousin
$
You should sell the truck to your
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