Problem
Present value concept Answer each of the following questions.
a. What single investment made? today, earning 15?% annual? interest, will be worth ?$5,900 at the end of 6 ?years?
b. What is the present value of ? $5,900 to be received at the end of 6 years if the discount rate is 15?%?
c. What is the most you would pay today for a promise to repay you $5,900 at the end of 6 years if your opportunity cost is 15?%?
d. Compare, contrast, and discuss your findings in part a through c.