which investment is preferable? Activity: Answer the following problems.1. Which investment is preferable? (Hint: Compute for the market values)Investment in Sunrise company 100,000 at the end of 5 years plus P 24,000 annually for 4 yearsafterwards. Investment in XYZ company B offers P 50,000 semi-annually 15,000 every 6 months after 6years. Assume that money is worth 9% compounded annually.

The present value is the present worth of the amount that will be paid or received at present.

Answered: which investment is preferable?

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which investment is preferable?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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Concept explainers

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.

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