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There are two projects to choose from for an investment. Each project has a useful life of 6 years. Project 1 requires an initial payment
There are two projects to choose from for an investment. Each project has a useful life of 6 years. Project 1 requires an initial payment of 107,000, project 2 104,000. The following excess payments can be expected during the term:
a) Which investment is preferable due to the dynamic amortization calculation? The discount rate is 8%.
b) Would you have made the same decision based on the net present value method? Why or why not?
t 1 2 3 4 5 6 28.000 32.000 28.000 20.000 40.000 Zt(Projekt1) 24.000 Zt(Projekt2) 19.000 24.000 24.000 32.000 38.000 25.000Step by Step Solution
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