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Business, 21.02.2020 18:14 malasyamcclendon

1) An investment will pay $205,000 at the end of next year for an investment of $183,000 at the start of the year. If the market interest rate is 8% over the same period, should this investment be made?2) Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? Compute the PV of this annuity both as the sum of PV of each cash flow and using the annuity formula.

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