Time value of money

timer Asked: Oct 31st, 2018
account_balance_wallet $5

Question Description

An individual's opportunity cost is 12%, and the individual is offered to make a one-time payment in exchange for receiving $100,000 exactly 4 years from now. What is the maximum amount that this individual would be willing to pay now to receive the payment mentioned above? You may choose any period as the base period for determination of the time value of money.

Provide your work in detail and explain. Provide references for the content.

Tutor Answer

School: Carnegie Mellon University


flag Report DMCA

awesome work thanks

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors