answer high of the two alternatives would you select under the net present value?

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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Which of the two alternatives would you select under the net present value? (PV factor - 10 percent) Assume a $100,000 investment and the following cash flows for two alternatives: INVESTMENT A ($) 30,000 50,000 20,000 60,000 INVESTMENT B (S) 40,000 30,000 15,000 15,000 50,000 YEAR 1 3 4

of the bonds if the present yield to maturity is 12 percent.
Your answer
4. Which of the two alternatives would you select under the net present value? (PV
factor - 10 percent)
Assume a $100,000 investment and the following cash flows for two alternatives:
INVESTMENT A (S)
30,000
50,000
20,000
60,000
YEAR
1
2
3
4
5
Your answer
INVESTMENT B (S)
40.000
30,000
15,000
15.000
50,000
Transcribed Image Text:of the bonds if the present yield to maturity is 12 percent. Your answer 4. Which of the two alternatives would you select under the net present value? (PV factor - 10 percent) Assume a $100,000 investment and the following cash flows for two alternatives: INVESTMENT A (S) 30,000 50,000 20,000 60,000 YEAR 1 2 3 4 5 Your answer INVESTMENT B (S) 40.000 30,000 15,000 15.000 50,000
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