End of Chapter 18 Questions and Answers
1. What is the present value of an offer of $15,000 one year from now if the opportunity cost of capital (discount rate) is 12% per year simple interest? Answer: 15000/1.12 = $13,393. 2. What is the present value of an offer of $14,000 one year from now if the opportunity cost of capital (discount rate) is 11% per year simple interest? ................
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