An investor has $50,000 available to invest and must decide between various opportunities being proposed to...

 

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An investor has $50,000 available to invest and must decide between various opportunities being proposed to him. The opportunities are contained in the following table. Total Investment Needed $0 Opportunity A. Do Nothing B. Invest in garment manufacturer C. Invest in fast food $45,000 $5,500 $25,000 restaurant D. Invest in coffee shop $50,000 $5,700 $30,000 Assuming 8% is the minimum acceptable rate of return (MARR), which opportunity should the investor choose on the basis of Future Worth? $40,000 Uniform Net Annual Benefit $0 Terminal Value at End of 25 years $0 $5,000 $25,000 An investor has $50,000 available to invest and must decide between various opportunities being proposed to him. The opportunities are contained in the following table. Total Investment Needed $0 Opportunity A. Do Nothing B. Invest in garment manufacturer C. Invest in fast food $45,000 $5,500 $25,000 restaurant D. Invest in coffee shop $50,000 $5,700 $30,000 Assuming 8% is the minimum acceptable rate of return (MARR), which opportunity should the investor choose on the basis of Future Worth? $40,000 Uniform Net Annual Benefit $0 Terminal Value at End of 25 years $0 $5,000 $25,000

Answer rating: 100% (QA)

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