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I. Rick Field deposited $10,000 into an account at his credit union. The money was lef on deposit for 10 years, with no withdrawals. During

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I. Rick Field deposited $10,000 into an account at his credit union. The money was lef on deposit for 10 years, with no withdrawals. During the first five years, Rick eamed 15% annual interest (nom nal), compounded monthly. The credit umon then charged its interest policy so that forthe second five years he earned 18% annual interest a. How much money was in Rick's account at the end of five years b. How much money was in Rick's account at the end of ten years! the overall ROR (rate of return) that Rick received for all rears 2, Cristy Guay, the owner of a loesl restaurant, is trying te decide whether to buy charcoal broiling unit or an elecuric grill for cooking hamburgers. A market study shows that customers prefler charcoal broing, but the unit is more expensive. Cristy's MARAminimum attractive rate of return) is 20%. Se estimates the cor, and net beneies from the two altermatives as follows End of Year Grill Broiler $2200 +990 1.450 710 a) Use incremental rate of return (ROR) analysis to determine which alternantive Cristy should choose. SHOW ALL WORK, below b) Cristy should choose (circle one The Broiler o The Grill I. Rick Field deposited $10,000 into an account at his credit union. The money was lef on deposit for 10 years, with no withdrawals. During the first five years, Rick eamed 15% annual interest (nom nal), compounded monthly. The credit umon then charged its interest policy so that forthe second five years he earned 18% annual interest a. How much money was in Rick's account at the end of five years b. How much money was in Rick's account at the end of ten years! the overall ROR (rate of return) that Rick received for all rears 2, Cristy Guay, the owner of a loesl restaurant, is trying te decide whether to buy charcoal broiling unit or an elecuric grill for cooking hamburgers. A market study shows that customers prefler charcoal broing, but the unit is more expensive. Cristy's MARAminimum attractive rate of return) is 20%. Se estimates the cor, and net beneies from the two altermatives as follows End of Year Grill Broiler $2200 +990 1.450 710 a) Use incremental rate of return (ROR) analysis to determine which alternantive Cristy should choose. SHOW ALL WORK, below b) Cristy should choose (circle one The Broiler o The Grill

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