You are considering three alternative investments. Investment X offers a return of 1.5% per month compound interest.
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Question:
You are considering three alternative investments. Investment X offers a return of 1.5% per month compound interest. Investment Y offers a payoff of $895.65 after four years in return for savings of $80 made at the end of each half-year. Investment Z requires you to deposit $440.00 now and also pays back $895.65 after four years.
Required: Suggest a suitable way of choosing between these investments and rank them accordingly.
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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