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A company has two investment opportunities. Alternative 1 (Alt. 1) pays $11,000 (inflow) two years from now, and $28,000 (inflow) four years from now. Alternative

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A company has two investment opportunities. Alternative 1 (Alt. 1) pays $11,000 (inflow) two years from now, and $28,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $5,500 (inflow) at the end of every year for five years. Interest is 7.1% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. Round the values for Alt. 1 and Alt. 2 to the nearest dollar. TWO YEARS FOUR YEARS FIVE YEARS P/Y C/Y N I/Y % % % PV $ $ $ PMT $ $ FV $ $ Alt. 1 = $ Alt. 2 = $ Choic Select an answer Alt. 1 Either Alt.1 or Alt. 2 Alt. 2 Check Answer A company has two investment opportunities. Alternative 1 (Alt. 1) pays $11,000 (inflow) two years from now, and $28,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $5,500 (inflow) at the end of every year for five years. Interest is 7.1% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. Round the values for Alt. 1 and Alt. 2 to the nearest dollar. TWO YEARS FOUR YEARS FIVE YEARS P/Y C/Y N I/Y % % % PV $ $ $ PMT $ $ FV $ $ Alt. 1 = $ Alt. 2 = $ Choic Select an answer Alt. 1 Either Alt.1 or Alt. 2 Alt. 2 Check

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