Company XYZ has hired you as a consultant. It has suggested two options to pay for your
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Question:
Company XYZ has hired you as a consultant. It has suggested two options to pay for your services:
Option A: An initial payment of 100,000AED on signing the contract, 200,000AED end of the second year and 100,000 at end of the third year.
Option B: An initial payment of 100,000AED on signing the contract, 150,000AED end of the first year, and 140, 000AED end of the second year.
Which payment plan above should you accept if the market interest rate is 10%? Briefly explain your choice
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: