Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a rational person would prefer which of the follow

A rational person would prefer which of the following cash flows. a. $5,000 per...

50.1K

Verified Solution

Question

Finance

A rational person would prefer which of the following cash flows.
a. $5,000 per year for 10 years with the first payment made one year from today
b. $5,000 per year for 10 years with the first payment made today
c. $50,000 paid today
d. $25,000 paid today and $25,000 paid next year
e. $49,000 paid today
enter a,b,c,d or e
Answer format: Text
What is the value today of a money machine that will pay $2,396.00 per year for 26.00 years? Assume the first payment
is made one year from today and the interest rate is 9.00%.
Answer format: Currency: Round to: 2 decimal places.
What is the value today of a money machine that will pay $3,054.00 per year for 20.00 years? Assume the first payment
is made 2.00 years from today and the interest rate is 12.00%.
Answer format: Currency: Round to: 2 decimal places.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students