CA person wants to have (5000 CU) pay for his education at the end of each year for (6 years). It the bank rate of interest is (11.5%), how much money has to be deposit at present. Q2:A company invests in one of three alternatives, the life of all alternatives is estimated to be (5 years) with the following investments, annual returns, and salvage value: Alternatives 2 175000 CU 70000 CU 25000 CU Details Alternatives 1 Alternatives 3 200000 CU Investment 150000 CU Annual equal return 60000 CU 70000 CU Salvage value 15000 CU 50000 CU Determine the best alternative based on Net Present Worth Comparison (NPW) by assuming i= 10%.

CA person wants to have (5000 CU) pay for his education at the end of each year for (6 years). It the bank rate of interest is (11.5%), how much money has to be deposit at present. Q2:A company invests in one of three alternatives, the life of all alternatives is estimated to be (5 years) with the following investments, annual returns, and salvage value: Alternatives 2 175000 CU 70000 CU 25000 CU Details Alternatives 1 Alternatives 3 200000 CU Investment 150000 CU Annual equal return 60000 CU 70000 CU Salvage value 15000 CU 50000 CU Determine the best alternative based on Net Present Worth Comparison (NPW) by assuming i= 10%.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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