What is the most you would be willing to pay for an investment that will pay you $537 in one year, $856, in two years, and $902 in three years, if your required rate of return for this type of investment is 10% ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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What is the most you would be willing to pay for an investment that will pay you $537 in one year, $856, in two years, and $902 in three years, if
your required rate of return for this type of investment is 10% ?
Transcribed Image Text:What is the most you would be willing to pay for an investment that will pay you $537 in one year, $856, in two years, and $902 in three years, if your required rate of return for this type of investment is 10% ?
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