Pam Valenti has been offered an investment opportunity that will pay her $1,700 eight years from now. Pam has other inve

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answerhappygod
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Pam Valenti has been offered an investment opportunity that will pay her $1,700 eight years from now. Pam has other inve

Post by answerhappygod »

Pam Valenti has been offered an investment opportunity that will
pay her $1,700 eight years from now. Pam has other investment
opportunities available to her that pay 4%, so she will require a
4% return on this opportunity. How much should Pam pay for this
opportunity? In other words, what is the present value of $1,700
that comes in 8 years if the opportunity cost is 4%?
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