Question

In: Finance

The present value of $20,000 to be received 25 years from today, assuming an opportunity cost...

The present value of $20,000 to be received 25 years from today, assuming an opportunity cost of 18 percent is

Solutions

Expert Solution

Present Value = Future Value / (1+interest rate)number of years

Present Value = 20,000 / (1+18%)25

Present Value = $319.14


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