How can the Present-Worth Comparison be done?

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
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How can the Present-Worth Comparison be done?

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Step 1

The present worth method of comparison will diminish the cash flows of every choice to time zero by expecting a loan fee i.

Step 2

At that point, contingent upon the kind of a choice, the best elective will be picked by looking at the current measure of the choices worth. In the event that the choice is to pick the option with the most minimal cost, at that point the elective will be picked with the least present worth number.

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