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Multiple Choice Question 3. For expanding your company you were given two choices. Option A is to spend $150,000 now, while option B is to spend $122,000 now and an additional $80,000 at a later date. At a 6.37% investment rate, the breakeven point for the timing of the $80,000 investment for the two options is closest to: A. 5 years B. 12 years C. 17 years D. 22 years

Multiple Choice Question 3. For expanding your company you were given two choices. Option A is to spend $150,000 now, while option B is to spend $122,000 now and an additional $80,000 at a later date. At a 6.37% investment rate, the breakeven point for the timing of the $80,000 investment for the two options is closest to: A. 5 years B. 12 years C. 17 years D. 22 years

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Multiple Choice Question 3. For expanding your company you were given two choices. Option A is to spend $150,000 now, while option B is to spend $122,000 now and an additional $80,000 at a later date. At a 6.37% investment rate, the breakeven point for the timing of the $80,000 investment for the two options is closest to: A. 5 years B. 12 years C. 17 years D. 22 years
Transcribed Image Text:Multiple Choice Question 3. For expanding your company you were given two choices. Option A is to spend $150,000 now, while option B is to spend $122,000 now and an additional $80,000 at a later date. At a 6.37% investment rate, the breakeven point for the timing of the $80,000 investment for the two options is closest to: A. 5 years B. 12 years C. 17 years D. 22 years
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