FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 16
Substitutionary analysis
Incremental cash flows
Cash flow analysis
Pro forma analysis
Five years ago , Jane invested $ 5,000 and locked in an 8 percent annual interest rate for 25 years ( ending 20 years from now ). James can make a 20-year investment today and lock in a 10 percent interest rate . How much money should he invest now in order to have the same amount of money in 20 years as Jane ?
$ 7,346.64
$ 5,089.91
$ 3,160.43
$ 3,464.11
Substitutionary analysis
Incremental cash flows
Cash flow analysis
Pro forma analysis
Five years ago , Jane invested $ 5,000 and locked in an 8 percent annual interest rate for 25 years ( ending 20 years from now ). James can make a 20-year investment today and lock in a 10 percent interest rate . How much money should he invest now in order to have the same amount of money in 20 years as Jane ?