What is the value of an asset which pays $200 a year for the next 5 years (the first payment comes one year from today) and can be sold for $1,500 after 5 years? Assume that the opportunity cost is 10 percent.
What will be an ideal response?
Using Financial calculator: FV = 1,500, PMT = 200, N = 5, I = 10, CPT PV = -1,689.54
The value of the asset = $1,689.54.
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What will be an ideal response?
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