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ive a total amount to invest of 3,000.000. There are a couple of opportunities available. The horizon of 10-year certificate of deposit is available with

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ive a total amount to invest of 3,000.000. There are a couple of opportunities available. The horizon of 10-year certificate of deposit is available with interest rate of 12% per year compounded quarterly. No store is available which would involve an initial investment of 1,000,000. Cost per year would be 800,000. interest is 10 years. USE PORTFOLIO TECHNIQUE to analyze problem (a). A mone ey can be deposited or withdrawn until maturity. (without a huge penalty) per year would be 1,400,000. Salvage Value would be zero as a reasonable assumption. In accordance with Portfollo technique, the store proceeds go to.(c): (c Passbook Savings account quarterly. can be added to and withdrawn at any time. Interest rate is 6% compounded (d) A factory which would involve an investment to 2,000,000. Cost per year would be 400,000. Revenue per year would be 1,2000,000. Salvage value would be 200,000. Proceeds go to(c) Using PORTFOLIO technique (FW) showing all work for full credit. Compare options

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