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3. One of John McVay's seminary buddies turned investment advisor is urging him to invest a portion of his considerable wealth in one or another
3. One of John McVay's seminary buddies turned investment advisor is urging him to invest a portion of his considerable wealth in one or another of the following opportunities. Dr. McVay will invest in at most one of the alternatives. After five years, he may sell his holding at the same price he paid for it. Values in Thousands of Dollars ABC DEF GHI 200.00 130.00 150.00 30.00 25.00 30.00 Purchase price Ann income JKL 275.00 50.00 Dr. McVay asked Steve Rose to help evaluate these opportunities. Mr. Rose constructed the graph of NPW as a function of interest rate below. But Mr. Rose was not able to finish the analysis before he had to go attend a conference of SDA institution chief financial officers. So, knowing you did well in engineering economy class, Dr. McVay called on you to finish it. Please construct a choice table from this information and identify the best pick for MARR = 10%. Dr. McVay's Investment Opportunities 150.00 130.00 110.00 90.00 70.00 NPW (1000$) 50.00 30.00 10.00 -10.00 -30.00 0% 5% 10% 15% 204 25% -50.00 Interest Rate ABC DEF GHI JKL 3. One of John McVay's seminary buddies turned investment advisor is urging him to invest a portion of his considerable wealth in one or another of the following opportunities. Dr. McVay will invest in at most one of the alternatives. After five years, he may sell his holding at the same price he paid for it. Values in Thousands of Dollars ABC DEF GHI 200.00 130.00 150.00 30.00 25.00 30.00 Purchase price Ann income JKL 275.00 50.00 Dr. McVay asked Steve Rose to help evaluate these opportunities. Mr. Rose constructed the graph of NPW as a function of interest rate below. But Mr. Rose was not able to finish the analysis before he had to go attend a conference of SDA institution chief financial officers. So, knowing you did well in engineering economy class, Dr. McVay called on you to finish it. Please construct a choice table from this information and identify the best pick for MARR = 10%. Dr. McVay's Investment Opportunities 150.00 130.00 110.00 90.00 70.00 NPW (1000$) 50.00 30.00 10.00 -10.00 -30.00 0% 5% 10% 15% 204 25% -50.00 Interest Rate ABC DEF GHI JKL
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