1. Which Offer has a better Fair Market Value?
Company A offers ₱150,000 at the end of 3 years plus ₱300,000 at the end of 5 years. Company B offers ₱25,000 at the end of each quarter for the next 5 years. Assume that money is worth 8% compounded annually. I'm not sure of my answer, Give me the correct formula if I'm wrong.

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Gemdenissedefiesta94viz Gemdenissedefiesta94viz · Answer 1

Answer:

Given

• Company A: 150,000 at the end of 3 years and 300,000 at the end of 5 years

• Company B: 25,000 at the end of quarter, for the next 5 years We have 4 quarter each year so that if 5

years we have 4* 5 = 20

25,000* 20 = 500,000

Question: (a) Which offer has a better

market value?

Answer is company b, because in 5 years it's have 500,000.

Question: ) What is the market value of Company A's offer?

Market value of company a is 450,000 for 8 years

Step-by-step explanation:

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