Investment A costs P20,000 and pays back P23,000 two years from now. Investment B costs P16,000 and pays back P9,000 each year for two years. If interest rate is 5%, what alternative is superior? Use FW method.
Investment A costs P20,000 and pays back P23,000 two years from now. Investment B costs P16,000 and pays back P9,000 each year for two years. If interest rate is 5%, what alternative is superior? Use FW method.
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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Investment A costs P20,000 and pays back P23,000 two years from now. Investment B costs P16,000 and pays back P9,000 each year for two years. If interest rate is 5%, what alternative is superior? Use FW method.
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