A company has two options to invest its surplus cash. Option A offers a return of 8%
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A company has two options to invest its surplus cash. Option A offers a return of 8% per annum, while Option B offers a return of 6% per annum. The company's auditor suggests that they should invest in both options to diversify their investment portfolio. If the company has $500,000 to invest and decides to allocate 60% of the investment to Option A, how much should they allocate to Option B to achieve an overall return of 7.2% per annum?
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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