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PART TWO Financial Tools . the value today of alternative. c. Which alternative, if any, will you take? Personal Finance Problem rean ab cash inflow,

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PART TWO Financial Tools . the value today of alternative. c. Which alternative, if any, will you take? Personal Finance Problem rean ab cash inflow, and its year of receipt are given for each investment. Which purchase mendations would you make, assuming that Tom can earn 10% on his investments: Investment Price A $18,000 600 3,500 1,000 B Single cash inflow $30,000 3,000 10,000 15,000 Year of receipt 5 20 10 C D 40 P5-18 Calculating deposit needed You put $10,000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later (thats 7 years after your original $10,000 deposit), the account balance is $20,000. W was the amount of the deposit at the end of year 3? P5-19 Future value of an annuity For each case in b. Are all the alternatives acceptable? That is, are they worth $23,000 today? P5-17 Cash flow investment decision Tom Alexander has an opportunity to purchase any investments shown in the following table. The purchase price, the amount of the single

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