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    Present value of money for Investment Projects

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    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.

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    https://brainmass.com/economics/principles-of-mathematical-economics/present-value-money-investment-projects-306131

    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.

    $2.19