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Consider the following alternatives: i. $110 received in one year ii. $200 received in five years iii. $350 received in 10 years a. Rank the
Consider the following alternatives: i. $110 received in one year ii. $200 received in five years iii. $350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is 4% per year? c. What is your ranking if the interest rate is 15% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. First calculate the present value (PV) of each alternative: The PV of $110 received in one year if the interest rate is 10% per year is $ . (Round to the nearest cent.) The PV of $200 received in 5 years if the interest rate is 10% per year is $ . (Round to the nearest cent.) The PV of $350 received in 10 years if the interest rate is 10% per year is $ (Round to the nearest cent.) Next, rank the choices by their PV: (Select the best choice below.) O A. The ranking of the projects is: option iii > option i > option i. Click to select your answer(s). javascript:doExercise (6); a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year b. What is your ranking if the interest rate is 4% per year? c. What is your ranking if the interest rate is 15% per year? Next, rank the choices by their PV: (Select the best choice below.) O A. The ranking of the projects is: option iii > option i > option ii. O B. The ranking of the projects is: option ii > option iii > option i. O C. The ranking of the projects is: option i > option ii > option iii. O D. The ranking of the projects is: option iii > option ii > option i. b. What is your ranking if the interest rate is only 4% per year? First calculate the present value (PV) of each alternative: Click to select your answer(s). javascript:doExercise(6); Chapter 6 Quiz 05/20/20 14.50nm b. What is your ranking if the interest rate is only 4% per year? First calculate the present value (PV) of each alternative: The PV of $110 received in one year if the interest rate is 4% per year is $ . (Round to the nearest cent.) The PV of $200 received in 5 years if the interest rate is 4% per year is $ . (Round to the nearest cent.) The PV of $350 received in 10 years if the interest rate is 4% per year is (Round to the nearest cent.) Next rank the choices by their PV: (Select the best choice below.) A Thoronline of the nrninnte ic. antion is antion ii antinn i Click to select your answer(s). T U JUU Tully Ille eestle is 15% per year? Next rank the choices by their PV: (Select the best choice below.) O A. The ranking of the projects is: option i > option ii > option iii. O B. The ranking of the projects is: option ii > option ii > option i. O C. The ranking of the projects is: option iii > option i > option ii. O D. The ranking of the projects is: option iii > option ii > option i. c. What is your ranking if the interest rate is 15% per year? First calculate the present value (PV) of each alternative: The Du in 10th nr if the interent wat in 10 m 0440 - nied in a c. What is your ranking if the interest rate is 15% per year? First calculate the present value (PV) of each alternative: The PV of $110 received in one year if the interest rate is 15% per year is $ - (Round to the nearest cent.) Round to the nearest cent.) The PV of $200 received in 5 years if the interest rate is 15% per year is . (Round to the nearest cent.) The PV of $350 received in 10 years if the interest rate is 15% per year is $ Next rank the choices by their PV: (Select the best choice below.) A The Online of the renientin. nntinn liontinn i antinn i Click to select your answer(s). Next rank the choices by their PV: (Select the best choice below.) O O O O A. The ranking of the projects is: option iii > option i > option ii. B. The ranking of the projects is: option ii > option iii > option i. C. The ranking of the projects is: option ii > option i > option iii. D. The ranking of the projects is: option i > option ii > option
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