Posted by Reba on Saturday, October 25, 2008 at 11:30pm.
i Craig:
I am already having trouble understanding Chapter 6, problem 2 on page 207 of textbook. I am currently on week 3 of the FIN 200 class. The problem reads as follows:
If you require a 9 percent return on your investments, which would you prefer?
a. $5,000 today
b. $15,000 five years from today
c. $1,000 per year for 15 years
Please help or give me some guidance. Thank you.

Finance  Reiny, Sunday, October 26, 2008 at 9:15am
b) present value = 15000(1.09)^5
= ....
c) present value = 1000[1  1.09)^15]/.09
= .... (assuming payments made at the end of the year)

Fin 200  Belle, Saturday, May 22, 2010 at 7:45pm
Hi Reba,
I am taking the same course as you are but only in week 1, I wanted to ask you for help with the statement of cash flow, did you understand how to accomplish this? I am very confused ... maybe you can help me.
thank you,
southern belle

Finance  marie, Saturday, January 22, 2011 at 9:47pm
We expect that we can receive annual incremental income after taxes of $15,000 which includes an adjustment for uncollectible accounts. What is the maximum commitment to A/R we should be willing to assume if our firm's minimum required aftertax return is 12%?
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