You have a total of 700,000 to invest. Available opportunities include: A certif

Question

You have a total of 700,000 to invest. Available opportunities include: A certificate of Deposit which yields 12% per year for 8 years and allows no deposit or withdrawals until the end of the 8^th year. A passbook bank account which allows deposits at any time it yields 3% per year. Machine A which has initial cost 400,000 yields a yearly revenue of 70000 per year and a Salvage Value of 10,000 at 8 years. 3%is the interest rate used to analyze this choice. Machine B which has initial cost 200,000 yields a yearly revenue of 40000 per year and a Salvage Value of 20,000 at 8 years. 3% is used. Use the Portfolio technique to analyze best choice using Future Worth at 8 years.

Explanation / Answer

which option gives maximum return choose that option

so calcualte return on each option.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.