evaluate three alternatives for investment
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Your uncle has given you three alternatives for your inheritance. You can have $10,000 now; $2,000 per year for the next eight years; or $24,000 at the end of eight years. Which inheritance alternative would be best and why? The discount rate is 6% (Explain your answer fully)
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Solution Summary
The solution is about evaluating which is the best way to inherit money from your uncle
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Present Value = Future Value / (1+discount rate)^ years
Option 1 )
Present Value = 10,000
Option ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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