Question
(3C) An investor is given the opportunity to invest in Project X and Y. Using the interest rate of 10% (compounded annually), calculate the
(3C) An investor is given the opportunity to invest in Project X and Y. Using the interest rate of 10% (compounded annually), calculate the net present values (express up to two decimal points) and decide if each project is worthwhile. (1) (ii) Project X: it costs 10,000 now and pays back 15,000 at the end of 5 years. 4 marks Project Y: it costs 15,000 now and pays back 25,000 at the end of 5 years. 4 marks
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Mathematics for Economics and Business
Authors: Ian Jacques
9th edition
129219166X, 9781292191706 , 978-1292191669
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