The Cap Company has a policy of requiring a rate of return on investments of 16%. Two

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The Cap Company has a policy of requiring a rate of return on investments of 16%. Two investment alternatives are available but the company may choose only one. Alternative 1 offers a return of $50 000 after 4 years, $40 000 after 7 years, and $30 000 after 10 years. Alternative 2 will provide returns to the company of $750 at the end of each month for 10 years. Which offer is preferable?
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0134141084

11th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs

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