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Use given cashflows but only show NPV for 10% 20% and 30% 5.1.4 Transactions A and B are to be compared. Transaction A has net
Use given cashflows but only show NPV for 10% 20% and 30%
5.1.4 Transactions A and B are to be compared. Transaction A has net cashflows of C = -5, G = 3.72, C'= 0, C;' = 4 and Transaction B has net cashflows C"-, C = 3, C = 1.7, C = 3. Find the yield rate for each transaction to at least 6 decimal plac- es. Show that Transaction A is preferable to B at interest prefer- ence rates less than 11.11% and at interest preference rates greater than 25%, and Transaction B is preferable at interest preference rates between 11.11% and 25% Step by Step Solution
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