The investment in Siomai J is P50 000 at the end of 5 years plus P6 000 annually for 4 years afterwards. While the investment in Dette's Milk tea offers P80 000 semi-annually and P10 000 every 5 months after 10 years. Assume that money is worth 9% compounded annually. Which investment would you preferred?

The investment in Siomai J is P50 000 at the end of 5 years plus P6 000 annually for 4 years afterwards. While the investment in Dette's Milk tea offers P80 000 semi-annually and P10 000 every 5 months after 10 years. Assume that money is worth 9% compounded annually. Which investment would you preferred?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Answer the following with full solution and pls. don't use excel.

3. The investment in Siomai J is P50 000 at the end of 5 years plus P6 000
annually for 4 years afterwards. While the investment in Dette's Milk tea
offers P80 000 semi-annually and P10 000 every 5 months after 10
years. Assume that money is worth 9% compounded annually. Which
investment would you preferred?

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