What is the present value of inheritance

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Problem 1: You will receive an inheritance of $ 100,000 in 20 years. Your investments earn 6% annually, compounded annually. To the nearest hundred dollars, what is the present value of your inheritance?

Problem 2: Columbus Clinic expects to receive $ 10,000 in 5 years from now. If the clinic's cost of capital is 12% per year, what is the value of the $ 10,000 3 years from now?

Problem 3: An equity investment decision has two components: Determining whether the investment is worthwhile, and determining how to finance the investment. Although these two decisions are interrelated, financial theory shows that these decisions must be separated. Do a brief review of these two components and their relevance to corporate value growth in the healthcare industry.

Reference no: EM132953611

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