Randy has two Term policies she would like to compare. The premiums she would pay each year
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Question:
Randy has two Term policies she would like to compare. The premiums she would pay each year for each policy are shown below. Calculate the NPV at a 6 percent after-tax discount rate. Which one should she select and why?
Year | A ($) | B ($) |
0 | 225 | 300 |
1 | 275 | 310 |
2 | 350 | 320 |
3 | 400 | 330 |
4 | 500 | 340 |
Related Book For
Introduction To Management Science A Modeling And Case Studies Approach With Spreadsheets
ISBN: 9781260716290
7th Edition
Authors: Frederick S. Hillier, Mark S. Hillier
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