If you require a 12 percent return on your investment, which would you prefer? You must quantitatively support your answer.
a. Present value of $8,000 today
b. Present value of $15,000 received in 5 years at 12%
c. Present value of a 15 year, $1,000 annuity at 12%
The question belongs to Finance and it discusses about choosing an investment which can yield 12% return on the investment. Calculations for the above details have been given in the solution.
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