Question: Two mutually exclusive alternatives are being considered. One of the alternatives must be selected. Using a 15% nominal interest rate compounded continuously, determine which one.

Two mutually exclusive alternatives are being considered. One of the alternatives must be selected. Using a 15% nominal interest rate compounded continuously, determine which one. Solve by annual cash flow analysis.

Year в -$3000 --$5000 +845 +1400 +1400 +1400 +1400 +845 3 +845 +845 +845 4 +1400

Year -$3000 --$5000 +845 +1400 +1400 +1400 +1400 +845 3 +845 +845 +845 4 +1400

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