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Determine the value of x, for a companys two investment alternatives to be equivalent at an interest rate of 5% per year: Option 1. Invest
Determine the value of x, for a companys two investment alternatives to be equivalent at an interest rate of 5\% per year:
Option 1. Invest $15 at the end of the first year. Starting from the end of 9th year, the company gets sales of $x for 3 years, followed by $2.0x for 8 years, and $x for 3 years.
Option 2. Invest $15 at year 0, and the company starts to get sales $15 at the end of year 8, increment by 1 cumulatively until at the end of year 14 (e.g., at end of year 9 is 16).
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