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Author Question: The table below shows the payments at the end of each year from three different physical ... (Read 284 times)

amymoore

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The table below shows the payments at the end of each year from three different physical assets.

AssetYear 1Year 2Year 3
A$1000$1000$1000
B$0$1000$2000
C$0$0$3000
Interest Rate5%5%5%

TABLE 15-1

Refer to Table 15-1. A, B, and C represent possible purchases of physical capital, each offering a stream of payments as indicated in the table. There are no payments beyond Year 3. The interest rates in each year are also specified in the table. What is the present value (at the beginning of Year 1) of asset C?
◦ 2590.67
◦ $2722.97
◦ $2634.70
◦ $3000
◦ $3150


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Marked as best answer by amymoore on Oct 12, 2022

katrey9207

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amymoore

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Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review


Liddy

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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