Question content area top Part 1 Your brother has offered to give you either $ 40 000 today or $ 80 000 in 9 years. If the interest rate is 6% per year, which option is preferable? Question content area bottom Part 1 The present value of the future amount (amount received in 9 years) is $ enter your response here. (Round to the nearest dollar.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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Question content area top Part 1
Your brother has offered to give you
either $ 40 000 today or $ 80 000 in 9
years. If the interest rate is 6 % per
year, which option is preferable?
Question content area bottom Part 1
The present value of the future
amount (amount received in 9 years)
is $ enter your response here.
(Round to the nearest dollar.)
Transcribed Image Text:Question content area top Part 1 Your brother has offered to give you either $ 40 000 today or $ 80 000 in 9 years. If the interest rate is 6 % per year, which option is preferable? Question content area bottom Part 1 The present value of the future amount (amount received in 9 years) is $ enter your response here. (Round to the nearest dollar.)
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