Business
Business, 18.02.2020 16:22, plumv2145

Your grandfather has offered you a choice of one of the three following alternatives: $9,500 now; $4,000 a year for seven years; or $51,000 at the end of seven years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 11 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
a-2. Which alternative should you choose?
$51,000 received at end of seven years
$4,000 received each year for seven years
$9,500 received nowb-1. If you could earn 12 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
b-2. Which alternative should you choose?
$51,000 received at end of seven years
$4,000 received each year for seven years
$9,500 received now

answer
Answers: 3

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