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SEND HELP! NEED ANSWERS WITH SOLUTIONS HERE. THANK YOU. SEE THE ATTACHED PICTURE. IT IS ABOUT TIME VALUE OF MONEY 26. A firm must choose

SEND HELP! NEED ANSWERS WITH SOLUTIONS HERE. THANK YOU. SEE THE ATTACHED PICTURE. IT IS ABOUT TIME VALUE OF MONEY

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26. A firm must choose between two investment alternatives, each costing $100,000. The first alternative generates $35,000 a year for four years. The second pays one large lump sum of $157,400 at the end of the fourth year. If the firm can raise the required funds to make the investment at an annual cost of 10 percent, which alternative should be preferred? 27. A savings and loan association finances your 25-year, $100,000, 9-percent mortgage. How much interest does the S&L collect on the loan in the second year? 28. You purchase a building for $900,000, collect annual rent (after expenses) of $120,000 and sell the building for $1,000,000 after three years. What is the annual return on this investment? 29. You buy a stock for $1,000 and expect to sell it for $900 after four years but also expect to collect dividends of $120 a year. Prove that the return on this investment is less than 10 percent 30. You purchase a stock for $10,000 and collect $400 at the end of each year in dividends. You sell the stock for $11,300 after four years. What was the annual return on your $10,000 investment

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