You are offered the choice of the following two income streams:

1. $300,000 every 3 years in perpetuity with the first receipt in 3 years.

2. $26,000 every month for 10 years with the first receipt immediately.

The annual interest rate is 3.6% pa.

Which income stream do you choose? (Answer to the nearest dollar)

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Consider a project as follows: initial investment-$100,000; Straight-line depreciation over the project life of 5 years; accounting breakeven quantity 17,000 units, fixed costs 130,000; variable costs $23 per unit; required returns16%. Ignoring the effect of taxes, find the cash breakeven quantity. 17356 Consider a project as follows: initial investment-$100,000; Straight-line depreciation over the project life of 5 years; accounting breakeven quantity 17,000 units, fixed costs 130,000; variable costs $23 per unit; required returns16%. Ignoring the effect of taxes, find the cash breakeven quantity. 17356

Answer rating: 100% (QA)

To compare the two income streams we need to bring them to a common basis We can use the ... View the full answer