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You won the lottery and a financial advisor sends you the following table of mutually exclusive investments, so that you can pick one.The rate of
You won the lottery and a financial advisor sends you the following table of mutually exclusive investments, so that you can pick one.The rate of return for each one is computed already.All of them have a life of 5 years.
A
B
C
D
Investment Needed
$130,000
$200,000
$330,000
$100,000
Annual Income
$38,780
$47,480
$91,550
$26,380
Rate of Return
15%
6%
12%
10%
If your MARR is 8%, which alternative should you pick?
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