Aline has three contracts from which to choose. The first contract will require an outlay of $ 100,000, but will return $ 150,000, one year from now. The second contract requires an outlay of $ 200,000, and will return $ 300,000, one year from now. The third contract requires an outlay of $250,000, and will return $ 355,000, one year from now. Only one contract can be accepted. If her MARR is 20%, which one should she choose?
Aline has three contracts from which to choose. The first contract will require an outlay of $ 100,000, but will return $ 150,000, one year from now. The second contract requires an outlay of $ 200,000, and will return $ 300,000, one year from now. The third contract requires an outlay of $250,000, and will return $ 355,000, one year from now. Only one contract can be accepted. If her MARR is 20%, which one should she choose?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Aline has three contracts from which to
choose. The first contract will require an
outlay of $ 100,000, but will return $
150,000, one year from now. The second
contract requires an outlay of $ 200,000,
and will return $ 300,000, one year from
now. The third contract requires an
outlay of $250,000, and will return $
355,000, one year from now. Only one
contract can be accepted. If her MARR is
20%, which one should she choose?
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