Question
. Jodha is offered two investment alternatives. If she chooses ALT 1, she will have to make an immediate outlay of $15,000. In return, she
. Jodha is offered two investment alternatives. If she chooses ALT 1, she will have to make an immediate outlay of $15,000. In return, she will receive $1200 at the end of every three months for the next ten years. If she chooses Alt 2, she will have to make an outlay of $7000 now and 7000 in two years. In return, she will receive $41,000 ten years from now. Interest is 12 % compounded semi-annually. Determine which investment should be accepted using the Net Present Value approach.show calculation by BAII plus Calculator.You are encouraged to draw the timelines for yourself to help you with setting up the logic of how to solve the problem.
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