Explore BrainMass

Explore BrainMass

    Present value of money for Investment Projects

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Determine which of two investment projects a manager should choose if the discount rate of the firm is 20 percent. The first project promises a profit of $100,000 in each of the next four years, while the second project promises a profit of $75,000 in each of the next six years.

    Please explain work and show any mathematical equations used to arrive at the answer.

    © BrainMass Inc. brainmass.com October 10, 2019, 12:46 am ad1c9bdddf

    Solution Preview

    We will find the Present value by following mathematical equation-
    Present value= Future value/(1+rate of ...

    Solution Summary

    Response provides steps to compute the present value of money.