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QUESTION
The present value of an immediate payment of $7,500 is, of course, $7,500. The $10,000 option is better, but only by a little. Example 25.
The present value of an immediate payment of $7,500 is, of course, $7,500. The $10,000 option is better, but only by a little. Example 25.4 Find the present value of two years" worth of weekly payments of $50 each if the inflation rate is 1.5%. How does the present value of this revenue stream change if the inflation rate is 3.5%? 7.5%? What is the simple numerical sum of all the payments?
