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Question 1 [6 Marks] Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of R10,000 Year 1
Question 1 [6 Marks] Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of R10,000 Year 1 Investment 1 Cash Flows R 5,000 6,000 7,000 8,000 Investment 2 Cash Flows R 8,000 7,000 6,000 5,000 Year 1 2 2. 3 3 4 4 Required: Assuming that you desire a 10% return on your initial investment, calculate the net present value of the two alternatives options and evaluate their relative attractiveness
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