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1. Novel Investment Ltd. accepts SR 10,000 at the end of every year for 20 years and pays the investor SR 8,00,000 at the end
1. Novel Investment Ltd. accepts SR 10,000 at the end of every year for 20 years and pays the investor SR 8,00,000 at the end of the 20th year. Innovative Investment Ltd. accepts SR10,000 at the end of every year for 20 years and pays the investor SR 15,00,000 at the end of the 25th year. Which is the best investment alternative? Use present worth base with i= 12%. 2. A small business with an initial outlay of SR 12,000 yields SR 10,000 during the first year of its operation and the yield increases by SR 1,000 from its second year of operation up to its 10th year of operation. At the end of the life of the business, the salvage value is zero. Find the present worth of the business by assuming an interest rate of 18%, compounded annually
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