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Q3. Suppose you have 5 investments lasts for exactly 10 years and the investors can choose only one investment option. Which ones should be chosen? Explain your answer? Note: The decision is made based on 20% MARR Investment Opportunity 1 2 3 4 5 Initial investment 25,000 15,000 70,000 50,000 40,000 Annual Return 5,000 3,750 14,250 11,250 9,250 Salvage Return 25,000 15,000 70,000 50,000 40,000 Inter Rate of Return

Q3. Suppose you have 5 investments lasts for exactly 10 years and the investors can choose only one investment option. Which ones should be chosen? Explain your answer? Note: The decision is made based on 20% MARR Investment Opportunity 1 2 3 4 5 Initial investment 25,000 15,000 70,000 50,000 40,000 Annual Return 5,000 3,750 14,250 11,250 9,250 Salvage Return 25,000 15,000 70,000 50,000 40,000 Inter Rate of Return

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
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Q3. Suppose you have 5 investments lasts for exactly 10 years and the investors can choose only one investment option. Which ones should be chosen? Explain your answer? Note: The decision is made based on 20% MARR Investment Opportunity 1 3 4 5 Initial investment 25,000 15,000 70,000 50,000 40,000 Annual Return 5,000 3,750 14,250 11,250 9,250 Salvage Return 25,000 15,000 70,000 50,000 40,000 Inter Rate of Return
Transcribed Image Text:Q3. Suppose you have 5 investments lasts for exactly 10 years and the investors can choose only one investment option. Which ones should be chosen? Explain your answer? Note: The decision is made based on 20% MARR Investment Opportunity 1 3 4 5 Initial investment 25,000 15,000 70,000 50,000 40,000 Annual Return 5,000 3,750 14,250 11,250 9,250 Salvage Return 25,000 15,000 70,000 50,000 40,000 Inter Rate of Return
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