Homework Help is Here – Start Your Trial Now!
Math
Statistics
You are considering two investment options. In option A, you have to invest $6,000 now and $1,200 three years from now. In option B. you have to invest $3,200 now, $1,800 a year from now, and $1,100 three years from now. In both options, you will receive four annual payments of $2,400 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when ; = 10% per year. - X More Info Equal Payment Series Single Payment Compound Amount Compound Amount Factor Sinking Fund Factor Present Worth Factor Factor (F/P, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) 1.1000 1.0000 1.0000 0.9091 1.2100 2.1000 0.4762 1.7355 1.3310 3.3100 0.3021 2.4889 1.4641 4.6410 0.2155 3.1699 1.6105 6.1051 0.1638 3.7908 1.7716 7.7156 0.1296 4.3553 1.9487 9.4872 0.1054 4.8684 2.1436 11.4359 0.0874 5.3349 2.3579 13.5795 0.0736 5.7590 2.5937 15.9374 0.0627 6.1446 N12345 6 7 8 9 10 Present Worth Factor (P/F, i, N) 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4685 0.4241 0.3855 Capital Recovery Factor (A/P, i, N) 1.1000 0.5782 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627

You are considering two investment options. In option A, you have to invest $6,000 now and $1,200 three years from now. In option B. you have to invest $3,200 now, $1,800 a year from now, and $1,100 three years from now. In both options, you will receive four annual payments of $2,400 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when ; = 10% per year. - X More Info Equal Payment Series Single Payment Compound Amount Compound Amount Factor Sinking Fund Factor Present Worth Factor Factor (F/P, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) 1.1000 1.0000 1.0000 0.9091 1.2100 2.1000 0.4762 1.7355 1.3310 3.3100 0.3021 2.4889 1.4641 4.6410 0.2155 3.1699 1.6105 6.1051 0.1638 3.7908 1.7716 7.7156 0.1296 4.3553 1.9487 9.4872 0.1054 4.8684 2.1436 11.4359 0.0874 5.3349 2.3579 13.5795 0.0736 5.7590 2.5937 15.9374 0.0627 6.1446 N12345 6 7 8 9 10 Present Worth Factor (P/F, i, N) 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4685 0.4241 0.3855 Capital Recovery Factor (A/P, i, N) 1.1000 0.5782 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
You are considering two investment options. In option A, you have to invest $6,000 now and $1,200 three years from now. In option B. you have to invest $3,200 now, $1,800 a year from now, and $1,100 three years from now. In both options, you will receive four annual payments of $2,400 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when /= 10% per year. - X More Info Single Payment Equal Payment Series Sinking Present Fund Worth Compound Amount Factor (F/A, i, N) Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 1.0000 0.9091 2.1000 0.4762 1.7355 3.3100 0.3021 2.4869 4.6410 0.2155 3.1699 6.1051 0.1638 3.7908 7.7156 0.1296 4.3553 9.4872 0.1054 4.8684 11.4359 0.0874 5.3349 13.5795 0.0736 5.7590 15.9374 0.0627 6.1446 N 1 2 3 4 5 6 7 8 9 10 Compound Amount Factor (F/P, i, N) 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 Present Worth Factor (P/F, i, N) 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4685 0.4241 0.3855 Capital Recovery Factor (A/P, i, N) 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627
Transcribed Image Text:You are considering two investment options. In option A, you have to invest $6,000 now and $1,200 three years from now. In option B. you have to invest $3,200 now, $1,800 a year from now, and $1,100 three years from now. In both options, you will receive four annual payments of $2,400 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when /= 10% per year. - X More Info Single Payment Equal Payment Series Sinking Present Fund Worth Compound Amount Factor (F/A, i, N) Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 1.0000 0.9091 2.1000 0.4762 1.7355 3.3100 0.3021 2.4869 4.6410 0.2155 3.1699 6.1051 0.1638 3.7908 7.7156 0.1296 4.3553 9.4872 0.1054 4.8684 11.4359 0.0874 5.3349 13.5795 0.0736 5.7590 15.9374 0.0627 6.1446 N 1 2 3 4 5 6 7 8 9 10 Compound Amount Factor (F/P, i, N) 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 Present Worth Factor (P/F, i, N) 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4685 0.4241 0.3855 Capital Recovery Factor (A/P, i, N) 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS