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Consider the two investments shown below, only one of which can be chosen. They are one-shot investments. Calculate AW 2-1 assuming 13.2305 interest rate. EOY

Consider the two investments shown below, only one of which can be chosen. They are one-shot investments. Calculate AW2-1 assuming 13.2305 interest rate.

EOY

Alternative 1

Alternative 2

0

- 20,286

- 40,370

1

3,741

1,000

2

3,741

1,800

3

3,741

2,600

4

3,741

3,400

5

3,741

4,200

6

5,000

7

5,800

8

6,600

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