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4. Project A requires an investment of 4000 today. The investment pays 2000 one year from today and 4000 two years from today. Project B requires an investment of X two years from today. The investiment pays 2000 today and 4000 one year from today. The net present values of the two projects are equal at an annual effective interest rate of 10%. Calculate X.

4. Project A requires an investment of 4000 today. The investment pays 2000 one year from today and 4000 two years from today. Project B requires an investment of X two years from today. The investiment pays 2000 today and 4000 one year from today. The net present values of the two projects are equal at an annual effective interest rate of 10%. Calculate X.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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4. Project A requires an investment of 4000 today. The investment pays 2000 one year from today and 4000 two years from today. Project B requires an investment of X two years from today. The investment pays 2000 today and 4000 one year from today. The net present values of the two projects are equal at an annual effective interest rate of 10%. Calculate X.
Transcribed Image Text:4. Project A requires an investment of 4000 today. The investment pays 2000 one year from today and 4000 two years from today. Project B requires an investment of X two years from today. The investment pays 2000 today and 4000 one year from today. The net present values of the two projects are equal at an annual effective interest rate of 10%. Calculate X.
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