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Home Q & A Board Science-Related Homework Help Mathematics
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bluejean bluejean
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4 months ago
You work for a development firm and have a residential building lot for sale. You have received two purchase offers. Offer A is offering a $200,000 down payment plus $450,000 payable in one year. Offer B is $150,000 down plus two $250,000 payments due six and twelve months from now. Which offer has the greater economic value if money can earn 4% compounded quarterly and how much greater is the higher offer in today's dollars?

▸ Offer A $2,877.94 greater value

▸ Offer B $2,977.94 greater value

▸ Offer B $2,877.94 greater value

▸ Offer A $2,977.94 greater value

▸ Offer B $2,888.94 greater value
Textbook 
Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
Authors:
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CodybarnesCodybarnes
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4 months ago
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More solutions for this book are available here
Offer B $2,877.94 greater value
1

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bluejean Author
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4 months ago
You make an excellent tutor!
ofsuahasiufhoas
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Yesterday
Brilliant ツ
branbran2k16
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2 hours ago
Correct Slight Smile TY
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