TABLE P6-82 Data for Problems 6-82 through 6-85 A B D E Capital investment Annual expenses Annual revenues $90,000 40,000 52,000 15,000 $60,000 $40,000 25,000 38,000 10,000 30.8% $30,000 15,000 28,000 10,000 $70,000 30,000 35,000 50,000 45,000 Market value at EOY 10 10,000 15,000 IRR ??? 7.4% 42.5% 9.2%
TABLE P6-82 Data for Problems 6-82 through 6-85 A B D E Capital investment Annual expenses Annual revenues $90,000 40,000 52,000 15,000 $60,000 $40,000 25,000 38,000 10,000 30.8% $30,000 15,000 28,000 10,000 $70,000 30,000 35,000 50,000 45,000 Market value at EOY 10 10,000 15,000 IRR ??? 7.4% 42.5% 9.2%
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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The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Use this information to solve, Using a MARR of 15%, the PW of the investment in A when compared incrementally to B is most nearly: (a) −$69,000 (b) −$21,000 (c) $20,000
(d) $61,000 (e) $53,000.
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