1. As a rental for a building, the owner received two offers: (A) P50000 a year for 8 years, the rental for each year paid at the start of the year (B) P30000 the first year, P40000 the second year, P50000 the third year, and P60000 for the next 5 years with all rentals paid at the beginning of each year. If money is worth 12%, which is the better offer?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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1. As a rental for a building, the owner received two offers:
(A) P50000 a year for 8 years, the rental for each year paid at the start of the year
(B) P30000 the first year, P40000 the second year, P50000 the third year, and P60000 for
the next 5 years with all rentals paid at the beginning of each year.
money is worth 12%, which is the better offer?
Transcribed Image Text:1. As a rental for a building, the owner received two offers: (A) P50000 a year for 8 years, the rental for each year paid at the start of the year (B) P30000 the first year, P40000 the second year, P50000 the third year, and P60000 for the next 5 years with all rentals paid at the beginning of each year. money is worth 12%, which is the better offer?
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