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Now that you've thought about the decision rule that should be applied to your decision,...

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Finance

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Now that you've thought about the decision rule that should be applied to your decision, apply it to the following security offered by your broker: Jing Associates, LLC, a large law firm in Denver, is building a new office complex. To pay for the construction, Jing Associates is selling secunity that will pay the investor the lump sum of $10,250 in four years. The current market price of the security is $8,674. Assuming that you can earn an annual return of 5.25% on your next most attractive investment, how much is the security worth to you today? 55,771 58.353 $9.606 From strictly financial persbiective, should you invest in the Ding security? NO O res Why or why not? Because the discounted value of the security's future cash flows a greater than the cost of the security Because the cost of the security greater than the discounted value of the security's future cashow

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