suppose you are given an option to invest in two annuity schemes scheme A and scheme B which of the options would you choose? scheme A scheme B Neither Both
suppose you are given an option to invest in two annuity schemes scheme A and scheme B which of the options would you choose? scheme A scheme B Neither Both
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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Question
suppose you are given an option to invest in two
scheme A and scheme B
which of the options would you choose?
scheme A
scheme B
Neither
Both
Transcribed Image Text:In Scheme A, you would need to make an initial
investment of 31.2 lakh, and you would receive an
annual cash inflow of 35,000 for the next four years. In
Scheme B, you would need to make the same initial
investment but would receive an annual cash inflow of
30,000 for the next five years.
Which of the following options would you choose, given
that the discount rate is 10%?
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