2. Compare the following alternatives, using (i) the Net Present Value method. The MARR is 13.32% annual nominal compounded quarterly. Alternative "X" Alternative "Y" Initital Investment $ 30,000 $25,500 Annual revenues 20,000 24,000 12,000 17,000 Annual expenses Salvage Value Useful life (years) 5,000 2,000 5 5

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. Compare the following alternatives, using (i) the Net Present Value method. The MARR is 13.32%
annual nominal compounded quarterly.
Alternative "X"
Alternative "Y"
Initital Investment
$
30,000
$25,500
Annual revenues
20,000
24,000
12,000
17,000
Annual expenses
Salvage Value
Useful life (years)
5,000
2,000
5
5
(USE EXCEL AND PUT THE FORMULAS)
Transcribed Image Text:2. Compare the following alternatives, using (i) the Net Present Value method. The MARR is 13.32% annual nominal compounded quarterly. Alternative "X" Alternative "Y" Initital Investment $ 30,000 $25,500 Annual revenues 20,000 24,000 12,000 17,000 Annual expenses Salvage Value Useful life (years) 5,000 2,000 5 5 (USE EXCEL AND PUT THE FORMULAS)
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