You are planning to sell some furniture and you have two offers. Your friend will give you $100 today, $200 in one year and $300 in two years. A consignment shop will give you $500 today. Your required return is 7%. What is the value of your friend's offer
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Ответ:
$548.95
Explanation:
To find the value of my friend's offer, I would find the present value of the offer
The present value is the sum of discounted cash flows
Cash flow at year zero = $100
Cash flow at year one = $200
Cash flow at year two = $300
Discount rate = 7%
Present value = $548.95
The value of my friends offer is $548.95
I hope my answer helps you
Ответ:
my mom will throw me out of my home