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The company is offering you the following options if you invest $23,000 today with an opportunity cost of 9%. Alternative Amount received at the end
The company is offering you the following options if you invest $23,000 today with an opportunity cost of 9%.
Alternative | Amount received at the end | Present value |
A | $28,500 after 3 years | $22,007.72 |
B | $54,00 after 9 years | $24,863.10 |
C | %160,00 after 20 years | $28,548.94 |
- Are all the alternatives individually acceptable? Why or why not?
- Which is the best alternative? Why?
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