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A retail department store must make a choice between two investments with a preferred rate of return of 15%. Alternative 1 will provide the store
A retail department store must make a choice between two investments with a preferred rate of return of 15%. Alternative 1 will provide the store with returns of $17,000 at the end of the third and fourth years and $65,000 at the end of six years. Alternative 2 will provide the store with annual returns of $12,500 for six years. Which alternative is preferable? Draw a timeline in your notes to practice! Select one: a. Alternative 1 b. Alternative 2
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