Question
A company is going to invest a significant amount of money and has identified 3 attractive alternatives to its economic interests. The Alpha and Beta
A company is going to invest a significant amount of money and has identified 3 attractive alternatives to its economic interests. The Alpha and Beta options whose information is shown in the table below, imply allocating funds for the execution of ambitious sales programs in 2 mass consumption industries, thus, once the campaigns are launched, considerable income and associated costs are expected to the maintenance of the accounts.
On the other hand, the third alternative involves the purchase of corporate bonds whose purchase value is $315,000, its maturity time is 1 year. The issuer of these bonds offers to pay a bimonthly rate of 40%.
Perform a PV analysis for this company and make a recommendation as to which alternative should be selected if the MARR is 12% semiannually compounded monthly.
Organize and display all your work. Each alternative must have its corresponding flowchart and equation in factors. If something is not understood, it will not be graded.
\begin{tabular}{|l|l|l|} \hline Alternatives & Alpha & Beta \\ \hline initial investment & $500,000 & $300,000 \\ \hline monthly income & $115,000 & $230,000 \\ \hline monthly costs & $95,000 & $195,000 \\ \hline salvage value & $10,000 & $48,000 \\ \hline Life (months) & 6 & 12 \\ \hline \end{tabular}Step by Step Solution
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