# Present value of money for Investment Projects

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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#### 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