How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask abozer Your Own Question
abozer
abozer, Research Assistant
Category: Homework
Satisfied Customers: 6159
Experience:  B.S. Mechanical Engineering
2125916
Type Your Homework Question Here...
abozer is online now
A new question is answered every 9 seconds

You have some property for sale and have received two offers.

Resolved Question:

You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the payment of $100,000 today and an additional $100,000 two years from today. If the applicable discount rate is 8.75 percent, which offer should you accept and why?
    You should accept the $189,000 today because it has the higher net present value.
   You should accept the $189,000 today because it has the lower future value.
   You should accept the second offer because you will receive $200,000 total.
   You should accept the second offer because you will receive an extra $11,000.
   You should accept the second offer because it has a present value of $194,555.42.
Submitted: 7 years ago.
Category: Homework
Expert:  abozer replied 7 years ago.
THIS ANSWER IS LOCKED!

You need to spend $3 to view this post. Add Funds to your account and buy credits.
abozer and other Homework Specialists are ready to help you

Related Homework Questions