Your company has $200,000 to invest and has identified the following three investments. Investment A requires an
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Your company has $200,000 to invest and has identified the following three investments. Investment A requires an initial investment of $130,000 and has an annual rate of return of 12%. Investment B requires an initial investment of $70,000 and has an annual rate of return of 16%. Investment C requires an initial investment of $30,000 and has an annual rate of return of 27%. Unused funds will be placed in a bank account with an annual percentage rate of 4.5%. You may invest in each of the investments only once. All of the investments have a life of one year. Which investment should your company invest in?
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The mutually exclusive alternatives are as follows Alt Investments Acceptable Notes Rate 1 None Yes 450 2 A Yes 938 3 B Yes 853 4 C Yes 788 5 A B Yes ...View the full answer
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