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what is the net present value of a three year $3000 annuity if it currently costs...

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Finance

what is the net present value of a three year $3000 annuity ifit currently costs 7200? the discount rate is 5%. A) would yourecommend this annuity? briefly explain why or why not. B) Howwould your answer change if the annuity is paid semiannually $1500every six months instead? No further calculation required: Brieflyexplain.

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4.0 Ratings (707 Votes)
1 Present value of 3 years annuity Annual Cash flows Present value of annuity of 1 3000 2723248 816974 Present value of 3 years annuity    See Answer
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