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The following 2 pieces of equipment are being considered. The 1st equipment runs for 5 years but the 2nd runs for 3 years. Which would
The following 2 pieces of equipment are being considered. The 1st equipment runs for 5 years but the 2nd runs for 3 years. Which would you select if the interest rate of 7% per year, compounded annually
| YEARS | PROJECT A | PROJECT B |
| 1 | 15,000 | 20,000 |
| 2 | 7,100 | 2,000 |
| 3 | 7,000 | 2,000 |
| 4 | 7,000 | 2,000 |
| 5 | 7,000 |
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An Introduction To Financial Markets A Quantitative Approach
Authors: Paolo Brandimarte
1st Edition
1118014774, 9781118014776
