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Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now; the other would

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Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now; the other would require the $40,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARFR of 10%, what should you do with the $40,000 you have? Year Alternative 1 $40,000 $15,000 $15,000 $15,000 $11,000 $11,000 Alternative 2 $0 $0 - $40,000 $18,000 $18,000 $18,000 0 2 4 The FW of the Alternative 1 is $ 18,463. (Round to the nearest dollar.) The FW of the Alternative 2 is $ 12,138. (Round to the nearest dollar.)

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