question archive A company has two investment opportunities: Alternative A returns $36,000 now, $20,000 in two years and $8,000 in four years
A company has two investment opportunities: Alternative A returns $36,000 now, $20,000 in two years and $8,000 in four years
Subject:EconomicsPrice: Bought3
A company has two investment opportunities:
Alternative A returns $36,000 now, $20,000 in two years and $8,000 in four years.
Alternative B returns $1,470 at the end of every month for four years.
The required rate of return is 8.5% compounded semi-annually. Using the discounted cash flow (DCF) method, which alternative is preferable?
