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Could I get step by step solution in using present value techniques to evaluate alternative investment opportunties?

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Could I get step by step solution in using present value techniques to evaluate alternative investment opportunties?
Answered Same Day Dec 23, 2021

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David answered on Dec 23 2021
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Could I get step by step solution in using present value techniques to evaluate alternative investment opportunties
    Could I get step by step solution in using present value techniques to evaluate alternative investment opportunities?
Step by step solution for present value techniques used to evaluate alternative investment opportunities are as follows:
For a one time payment or receipt:
Suppose A is due to receive $10,000 after 10 years. This receipt is a one time receipt and depending on the prevailing rate of interest or the rate which A can earn on alternate investments the present value is calculated, say 10%. Using the formula A * (1/(1+r)^n), the present value of $10,000 can be calculated:
A is the...
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