Present-value comparison assuming you can earn 5 percent on


Present-Value Comparison Assuming you can earn 5 percent on your money, which of the following offers should you choose? SAR 950 today; SAR 11,000 in 13 years; or SAR 24,000 in 21 years? Percent 5% Years Amount PV A Today 950 B 13 12,500 C 21 24,000 Which offer should you choose and why?

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Financial Management: Present-value comparison assuming you can earn 5 percent on
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