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Jeff has $ 4 . 5 million available to invest. He is considering two investment options Option A requires an initial investment of $ 4
Jeff has $ million available to invest. He is considering two investment options Option A requires an initial investment of $ million and Option B requires an initial investment of $ million. Each option is expected to generate returns over a year period. Option A is expected to generate a return of $ for the first year with annual returns for the subsequent years increasing by $ per year. OptionB is expected to generate a return of $ for the first year with annual returns for the subsequent years increasing by per year. The companys TVOM is per year compounded annually. a points Compute the present worth for Option Ab points Compute the present worth of for Option B c points Based on the above present worth calculations, which option should Jeff choose, if any? Explain.
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