The B Company has a policy of requiring a rate of return on investment of 16%. Two investment alt...
Homework Answers
Solution: 48,569
Working:
Investment from Alternative 1
50,000 (P/F, 16%, 4) + 40,000 (P/F, 16%, 7) + 30,000 (P/F, 16%, 10)
50,000 * 0.5523 + 40,000 * 0.3538 + 30,000 * 0.2267
27,615 + 14,153 + 6,801
48,569
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The B Company has a policy of requiring a rate of return on investment of 16%. Two investment alt...
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