Question
Mount Union is considering two different campuswide improvement projects. Project A requires an immediate payment of $600,000 and would yield an income stream of F
Mount Union is considering two different campuswide improvement projects. Project A requires an immediate payment of $600,000 and would yield an income stream of F ( t ) = 3 , 050 , 000 e 0 . 02 t dollars per year over the next 5 years. Project B requires an immediate payment of $400,000 and would yield an income stream of G(t)=3,200,000 dollars per year for the next 5 years. If the prevailing interest rate is 3% per year compounded continuously, which project will yield the higher net income at the end of 5 years? Question 2 options: Project A Project B
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