D-80 The interest rate that makes Alternatives A and Bequivalent is in what range? YearAlt. AAlt. B0 -$1000 –$300011005002100550310060042006505200700(a) Less than 2%(b) Between 2 and 5%(c) Greater than 5%(d) There is no interest rate that equates these twocash flow series.

The nominal interest rate can be nay declared or given rate of interest. It is also known as the…

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D-80 The interest rate that makes Alternatives A and B equivalent is in what range?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

D-80 The interest rate that makes Alternatives A and B
equivalent is in what range?

Year
Alt. A
Alt. B
0 -$1000 –$3000
1
100
500
2
100
550
3
100
600
4
200
650
5
200
700
(a) Less than 2%
(b) Between 2 and 5%
(c) Greater than 5%
(d) There is no interest rate that equates these two
cash flow series.

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