2. The following are exercises in present values: a. $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. What is...


Kindly ans first 3 parts of question 2



2. The following are exercises in present values:<br>a. $100 at the end of three years is worth how much today, assuming a discount rate of<br>(i) 100 percent? (ii) 10 percent? (iii) 0 percent?<br>b. What is the aggregate present value of $500 received at the end of each of the next<br>three years, assuming a discount rate of (i) 4 percent? (ii) 25 percent?<br>c. $100 is received at the end of one year, $500 at the end of two years, and $1,000 at the<br>end of three years. What is the aggregate present value of these receipts, assuming a<br>discount rate of (i) 4 percent? (ii) 25 percent?<br>d. $1,000 is to be received at the end of one year, $500 at the end of two years, and $100<br>at the end of three years. What is the aggregate present value of these receipts assum-<br>ing a discount rate of (i) 4 percent? (ii) 25 percent?<br>e. Compare your solutions in Part (c) with those in Part (d) and explain the reason for<br>the differences.<br>

Extracted text: 2. The following are exercises in present values: a. $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. What is the aggregate present value of $500 received at the end of each of the next three years, assuming a discount rate of (i) 4 percent? (ii) 25 percent? c. $100 is received at the end of one year, $500 at the end of two years, and $1,000 at the end of three years. What is the aggregate present value of these receipts, assuming a discount rate of (i) 4 percent? (ii) 25 percent? d. $1,000 is to be received at the end of one year, $500 at the end of two years, and $100 at the end of three years. What is the aggregate present value of these receipts assum- ing a discount rate of (i) 4 percent? (ii) 25 percent? e. Compare your solutions in Part (c) with those in Part (d) and explain the reason for the differences.

Jun 10, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here