Compute the present value of alternative

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Reference no: EM131498162

Your grandfather has offered you a choice of one of the three following alternatives: $13,500 now; $6,500 a year for nine years; or $91,000 at the end of nine years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Present value $13500 $6500 91000

Which alternative should you choose? $91,000 received at end of nine years, $6,500 received each year for nine years, $13,500 received now.

Reference no: EM131498162

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