- This topic has 1 reply, 2 voices, and was last updated 7 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Investment Appraisals’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>
Forums › ACCA Forums › General ACCA Forums › Investment Appraisals
Hello Sir, Please help on this question on IA:
An investor has a cost of capital of 10%. He is due to receive a 5 year annuity starting in 3 year’s times of $7,000 Per annum. What amount lump sum would you need to offer today to make him indifferent between the annuity and your offer?
A. $26,537
B. $19,936
C. $16,667
D. $21,924
I’m not sure why have you posted your question in this forum.
Please ask either in the ACCA F2 Forum in Ask the Tutor forum. This forum is for students to help each other on general matters.