at the beginning of year one, you have $100,000. Investments A and B are available. Their cash flows are as follows year 1 investment A $-1, investment B $0 Year 2 investment A $.5, investment B $-1. Year three investment A .8 investment B .8. In year 4 investment a .2 investment B .7. Assume that any money not invested in a or B earns interest at an annual rate of 2.5%. Determine how to maximize your cash on hand in your four

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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at the beginning of year one, you have $100,000. Investments A and B are available. Their cash flows are as follows year 1 investment A $-1, investment B $0  Year 2 investment A $.5, investment B $-1. Year three investment A .8 investment B .8. In year 4 investment a .2 investment B .7. Assume that any money not invested in a or B earns interest at an annual rate of 2.5%. Determine how to maximize your cash on hand in your four

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