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Please solve WITHOUT USING EXCEL. Show all work please. Thank you! You have $600 to invest, and are choosing between two projects, both of which
Please solve WITHOUT USING EXCEL. Show all work please. Thank you!
You have $600 to invest, and are choosing between two projects, both of which cost $600 up front and will yield six years of returns. The returns for the first investment will be $150 (in nominal \$) per year. The returns for the second will be $120 (in real \$) per year. If your real hurdle rate is 5% and the expected inflation rate is 2.5%, which of these investments should you choose (if any)Step by Step Solution
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