Find the value today of each alternative

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Reference no: EM1367497

In exchange for a $20,000 payment today, a well known company will allow you to choose one of the alternatives shown in given table. Your opportunity cost is 11 percent.

Alternative Single Amount
A $28,500 at end of 3 years
B $54,000 at end of 9 years
C $160,000 at end of 20 years

A) Find the value today of each alternative
B) Are all the alternatives acceptable-that is, worth $20,000 today?
C) Which alternative, if any, will you take?

Reference no: EM1367497

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