Question: FINANCE which choice is better and why? Compounding and Discounting Investment Receiving Year CF Choice 1 Choice 2 30000 Investment 35000 7000 for next 5
FINANCE
which choice is better and why?
Compounding and Discounting Investment Receiving Year CF Choice 1 Choice 2 30000 Investment 35000 7000 for next 5 Years Receiving 9000 for next 3 Years Rate of return 12% and 10000 in Yr 4 PV Year CF PV -30000 0 -35000 7000 1 9000 7000 2 9000 7000 3 9000 7000 4 10000 0 1 o 2 3 3 4 5 7000 Total O
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