Question
6-10. Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now; the other
6-10. Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now; the other would require the $40,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 10%, what should you do with the $40,000 you have? Year Alternative 1 Alternative 2 0 -$40,000 $0 1 $10,000 $0 2 $10,000 -$40,000 3 $10,000 $16,500 4 $12,000 $16,500 5 $13,000 $16,500
Alternative 1 | Alternative 2 | |
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