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uestion 6 Marvin had two term policies to compare with costs as shown below. Based on 7% after tax discount rate, which one should he

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uestion 6 Marvin had two term policies to compare with costs as shown below. Based on 7% after tax discount rate, which one should he select and why? Years Policy A Policy B 1 $195 S210 S240 $220 3 $250 $235 4 $270 $260 5 $290 $285 Policy A, since NPV of Policy A is $1009 while NPV of Policy B is $982 Policy B, since NPV of Policy A is $1079 while NPV of Policy B is $1051 OPolicy B, since NPV of Policy A is $1009 while NPV of Policy B is $982 Policy A, since NPV of Policy A is $1079 while NPV of Policy B is $1051

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