A courier service has revenue ranges with probabilities shown in the table. Monthlycapacity is 60,000 parcels and monthly O$M costs are $8,000. MARR is 12%,compounded monthly.What is the present worth of the expected revenue over 12 months?Revenue perparcelProbability$2.95$3.25$3.50$4.00$5.000.10.350.30.150.1Note: Precise values were used for calculating PW. You have to account for theeffect of rounding if you do the calculations manually.O PW=$2,435,599O PW-$2,217,321O PW=$2,329,238

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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

Problem 1PS

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A 180 day $3 million CD has a 4.25% annual rate quote. If you buy the CD, how much will you collect in 180 days? A. $3,045.678 B. $3,063,750 C. $3,062,877 D. $3,047,439
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