Present Value
Not what you're looking for?
A firm has the following investment alternatives:
Cash Inflows
Year A B C
1 $500 $0 $0
2 $500 $400 $0
3 $500 $800 $0
4 $600 $900 $1900
Which investment should be considered? Use a 9.5% discount rate.
Purchase this Solution
Solution Summary
Compares three investment alternatives by computing discounted values of cash flows.
Solution Preview
A firm has the following investment alternatives:
Cash Inflows
Year A B C
1 $500 0 $0
2 $500 $400 $0
3 $500 $800 $0
4 $600 $900 $1,900
Which investment should be considered? Use a 9.5% discount rate.
We calculate the Present Value of each alternative
To ...
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.