A company was offered two contracts. One is a $15 million contract providing $3 million a year

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A company was offered two contracts. One is a $15 million contract providing $3 million a year for 5 years. The other contract has $14 million which provides $4 million now and $2 million a year for 5 years.

Which investment would you select?

How did inflation impact your decision?

Why did you make these assumptions about inflation?

Related Book For answer-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

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Posted Date: Oct 02, 2023 01:41 AM

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A company was offered two contracts. One is a $15 million contract providing $3 million a year

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To determine which investment is more favorable we can calculate the present value of both contracts ... View the full answer

Business Mathematics In Canada

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