Discounted Cash Flow Exercises
2 Pages Posted: 21 Oct 2008
Students are asked in each of the situations presented, which alternative is better, assuming that they would put whatever money they receive in a secure investment that returns 10% annually.
DISCOUNTED CASH FLOW EXERCISES
1. In each of the following situations, which alternative is better, assuming that you would put whatever money you receive in a secure investment that returns 10% annually?
a. $ 100 now, or $ 130 three years from now
b. $ 250 now, or $ 350 five years from now
c. $ 500 two years from now, or $ 675 five years from now
. . .
Keywords: quantitative analysis, corporate financial strategy
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