You are investigating the costs of (a) renting and (b) purchasing a bobcat for a 2 year project. The rental option includes a security deposit of $3600 The Rate of Return is 12%. What is the PV of the security deposit at the

You are investigating the costs of (a) renting and (b) purchasing a bobcat for a 2 year project. The rental option includes a security deposit of $3600 The Rate of Return is 12%. What is the PV of the security deposit at the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You are investigating the costs of (a) renting
and (b) purchasing a bobcat for a 2 year
project. The rental option includes a security
deposit of $3600
The Rate of Return is 12%.
What is the PV of the security deposit at the
end of the 2 years when it will be returned to
you?
Round your answer to the nearest penny.
Your Answer:
Answer

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