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Judy 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
Judy 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.
BA II Plus Calculatore Method input
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