How much would you be willing to pay today for an investment that pays $1,300 per year at the end of the next 10 years

The investment is worth $8,732.11 today.

Explanation:

Giving the following information:

Cash flow= $1,300

Number of years= 10

To calculate the present value, we need a discount rate. If not, the value of money through time is irrelevant.

Imagine a discount rate of 8% compounded annually.

First, we will calculate the future value:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {1,300*[(1.08^10) - 1]} / 0.08

FV= $18,832.53

Now, the present value:

PV= FV/(1+i)^n

PV= 18,832.53/1.08^10

PV= $8,732.11

the answer is b for dog

answer; dogs;