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An investor is choosing between the following mutually exclusive investments: Investment 1 investment 2 Initial outlay $48,000 $60,000 Annual after-tax $14,000 $16,000 cash inflow Lifetime,
An investor is choosing between the following mutually exclusive investments: Investment 1 investment 2 Initial outlay $48,000 $60,000 Annual after-tax $14,000 $16,000 cash inflow Lifetime, years 4 If the discount rate is 10%. Which investment is more profitable? Use both the least common denominator of time and annuity equivalents. (12 points)
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