Question
The owner of a business is presented with two alternative projects. The first project involves the investment of $5,000 now. In return, the business will
The owner of a business is presented with two alternative projects. The first project involves the investment of $5,000 now. In return, the business will receive a payment of $8,000 in 4 years and a payment of $8,000 in 10 years. The second project involves an investment of $5,000 now and another $5,000 three years from now. The returns will be semi-annual payment of $950 for 10 years. Which project is preferable if the required rate of return is 14% compounded annually?
I NEED AN ANSWER ONLY BY USING use the TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) to solve questions whenever possible.
PLEASE :)
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