Question: instructions: Analyze the given data 1. Answer the field initial cost 2. Answer the field Rate of Return(%) 3. Put a Mark on Maximum by

instructions: Analyze the given data 1. Answer

instructions: Analyze the given data 1. Answer the field initial cost 2. Answer the field Rate of Return(%) 3. Put a Mark on Maximum by answering Yes or No. Decide which of the investment is "best", explain why.

Decision Making on Investment: Simple Interest Investment $ Year Factor Commodity Stock Bond 0.93458 3,056 2,748 2,607 2 0.87344 3,363 2,655 2,987 3 0.81630 2,555 2,343 2.392 4 0.76290 2,579 2,413 2,685 5 0.71299 2,310 2,189 2,403 Total $ (present value) 13,862 12,338 13,075 Initial Cost ? ? Net Present Value 962 938 875 Rate of Return ? ? Maximum? ? ? Source: Operations Management Models, A problem Solving Approach: Edwin J. Loma Net Present Value = Total $ (Present Value) - Initial Cost $ Above table shows three different investments. Instruction: Analyze the given data. 1. Answer the field Initial Cost 2. Answer the field Rate of Return (%) 3. Put a mark on Maximum by answering Yes or No Decide which of the Investment is "best", explain why

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!