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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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![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](https://content.bartleby.com/qna-images/question/82a55757-d2b3-426e-a054-70e5fa89af6d/90cde6d5-44aa-43a5-8b71-dd1a346c5060/1suwx08_thumbnail.png)
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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