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End of Year BV01 BV02 BV03 |-$35,000 -$80,000 -S60,000 so $10,000 $o $10,000 $40,000 1 $0 2 3 $0 $10,000 $0 4 $50,000 $90,000 $40,000

End of Year BV01 BV02 BV03 |-$35,000 -$80,000 -S60,000 so $10,000 $o $10,000 $40,000 1 $0 2 3 $0 $10,000 $0 4 $50,000 $90,000 $40,000

Essentials Of Investments
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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An investor has $100,000 to invest in a business venture, or she can earn 10%/year with a $100,000 certificate of deposit for 4 years. Three possible business ventures have been identified. Any money not invested in the business venture can be put into a bank account that earns 7%/year. Based
on a future worth analysis, what should be done with the $100,000? 

End of Year BV01 BV02 BV03 |-$35,000 -$80,000 -S60,000 so $10,000 $o $10,000 $40,000 1 $0 2 3 $0 $10,000 $0 4 $50,000 $90,000 $40,000
Transcribed Image Text:End of Year BV01 BV02 BV03 |-$35,000 -$80,000 -S60,000 so $10,000 $o $10,000 $40,000 1 $0 2 3 $0 $10,000 $0 4 $50,000 $90,000 $40,000
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