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Cambrian College has to choose between two investment alternatives. Alternative A (a new residence) will provide returns to the college of $30,000 after 2 years,

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Cambrian College has to choose between two investment alternatives. Alternative A (a new residence) will provide returns to the college of $30,000 after 2 years, $20,000 after 3 years and $10,000 after 4 years. Only $2000 per year is made in years five and six. Alternative B (a new gym) will bring returns of $11,000 per year for 6 years. If the college expects a return of 9% compounded annually on investments, which alternative should it choose? Draw a timeline in your notes to practicel Select one: a. Alternative A b. Alternative B

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