II. We can make an immediate payment now of Rs 130,000 or pay equal amount of A for the next five years, first payment being payable after 1 year. 1) with a time value of money of 12 per cent , what...


II. We can make an immediate payment now of Rs 130,000 or pay equal amount of A for<br>the next five years, first payment being payable after 1 year.<br>1) with a time value of money of 12 per cent , what the maximum value of A we would<br>be willing to accept?<br>2) What maximum value of A we would be willing to accept if the payments are made<br>in the beginning of the year?<br>

Extracted text: II. We can make an immediate payment now of Rs 130,000 or pay equal amount of A for the next five years, first payment being payable after 1 year. 1) with a time value of money of 12 per cent , what the maximum value of A we would be willing to accept? 2) What maximum value of A we would be willing to accept if the payments are made in the beginning of the year?

Jun 11, 2022
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