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borteleto borteleto
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6 years ago
Frank Zanca is considering three different investments that his broker has offered to him. The different cash flows are as follows:

End of YearABC
1300400
2300
3300
4300300600
5300
6300
7300
8300600

Because Frank only has enough savings for one investment, his broker has proposed the third alternative to be, according to his expertise, "the best in town." However, Frank questions his broker and wants to calculate the present value of each investment. Assuming a 15% discount rate, what is Frank's best alternative?
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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Marc18Marc18
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6 years ago
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borteleto Author
wrote...
#2
6 years ago
Electric Light Bulb Correct, thanks!
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