Question: Two different proposals are considered , both are expected to continue for an infinite period. If the interest rate is 11%, which proposal is most

 Two different proposals are considered , both are expected to continue

Two different proposals are considered , both are expected to continue for an infinite period. If the interest rate is 11%, which proposal is most economical on annual -equivalent approach, Draw your cash flows and write your comments. NA B 0-200,000 -280,000 1 -105,000 -70,000 2-105,000 -70,000 3 65,000 -105,000-70,000 4 -70,000 5 85,000 -70,000 Two different proposals are considered , both are expected to continue for an infinite period. If the interest rate is 11%, which proposal is most economical on annual -equivalent approach, Draw your cash flows and write your comments. NA B 0-200,000 -280,000 1 -105,000 -70,000 2-105,000 -70,000 3 65,000 -105,000-70,000 4 -70,000 5 85,000 -70,000

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