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szehim2009 szehim2009
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A year ago
Two alternative investments require the same cash outlay. Their net cash returns are as follows:


ALTERNATIVE A: $20,000 each year for five years beginning one year from now.
ALTERNATIVE B: $10,000 each year for 11 years beginning one year from now.

If money is worth 20% compounded annually, which investment alternative should be chosen? What is the size of the current economic advantage of the preferred alternative?

▸ Alternative A by $7887.52

▸ Alternative A by $16,541.64

▸ Alternative B by $7887.52

▸ Alternative B by $16,541.64

▸ Alternative B by $10,000.00
Textbook 
Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
Authors:
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whtsi_ep3whtsi_ep3
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A year ago
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