pick the correct option

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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Remaining Time: 4 hours, 57 minutes, 03 seconds.
* Question Completion Status:
O. Option A is preferable as it has a shorter payback period
Od. We do not have sufficient information to decide which option is better
De. We do have sufficient information to decide which option is better
QUESTION 4
For the investment of the following table, pick the correct option assuming that the opportunity cost of the capital equals 3.5%.
Year 1
Year 2
Year 3
Year4
Year 5
Revenues
40
25
32
46
50
Costs
40
20
34
48
50
The Investment
O a. is financially sustainable only in years 1 and 2
O6.is financially sustainable only in years 1, 2 and 5
Oe is financially sustainable
Od is not financially sustainable
e we can't say if it is financially sustainable
QUESTION 5
Transcribed Image Text:Remaining Time: 4 hours, 57 minutes, 03 seconds. * Question Completion Status: O. Option A is preferable as it has a shorter payback period Od. We do not have sufficient information to decide which option is better De. We do have sufficient information to decide which option is better QUESTION 4 For the investment of the following table, pick the correct option assuming that the opportunity cost of the capital equals 3.5%. Year 1 Year 2 Year 3 Year4 Year 5 Revenues 40 25 32 46 50 Costs 40 20 34 48 50 The Investment O a. is financially sustainable only in years 1 and 2 O6.is financially sustainable only in years 1, 2 and 5 Oe is financially sustainable Od is not financially sustainable e we can't say if it is financially sustainable QUESTION 5
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