Determine the present value of the investment


Question: Transit Insurance Company has made an investment in another company that will assurance it a cash flow of 37,250 dollar each year for the next 5 years. If the company uses a discount rate of fifteen percent on its investments, determine the present value of this investment? [Give your answer to the nearest dollar.]

[A]    $251,154

[B]   $186,250

[C]    $101,766

[D]   $124,868

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determine the present value of the investment
Reference No:- TGS017562

Expected delivery within 24 Hours