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8. If the interest rate is 24% per year compounded monthly, compare the alternatives shown below on the basis of a present worth analysis Alternative 1 ST8000 First cost Annual operating cost Annual income $4600 $20000 $3000 Alternative 2 $33000 $5600 $27000 $4200 Salvage value Life, years

8. If the interest rate is 24% per year compounded monthly, compare the alternatives shown below on the basis of a present worth analysis Alternative 1 ST8000 First cost Annual operating cost Annual income $4600 $20000 $3000 Alternative 2 $33000 $5600 $27000 $4200 Salvage value Life, years

Essentials Of Investments
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
Section: Chapter Questions
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7. Five equal deposits of $8000 will be made every 3 years starting next year at %12 per year compounded quarterly. What will be the total accrued amount withdrawn 4 years after the last deposit is made? 8. If the interest rate is 24% per year compounded monthly, compare the alternatives shown below on the basis of a present worth analysis Alternative 1 S18000 $4600 $20000 $3000 Alternative 2 33000 $5600 $27000 $4200 5. First cost Annual operating cost Annual income Salvage value Life, years
Transcribed Image Text:7. Five equal deposits of $8000 will be made every 3 years starting next year at %12 per year compounded quarterly. What will be the total accrued amount withdrawn 4 years after the last deposit is made? 8. If the interest rate is 24% per year compounded monthly, compare the alternatives shown below on the basis of a present worth analysis Alternative 1 S18000 $4600 $20000 $3000 Alternative 2 33000 $5600 $27000 $4200 5. First cost Annual operating cost Annual income Salvage value Life, years
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