Homework Answers
Please vote and reach me inAin comments for any clarification
Project A=
r = 4/2 = 2% semi annual
Annual percentage rate = (1+0.02)² - 1= 4.04%
Project B =
r = 3.5/52 = 0.0673%
Annual percentage rate = (1+0.000673)^52 -1 = 3.5608%
APR is higher for project A, project A should be selected.
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