Chapter 6.6, Problem 43PS

(a)

To determine

To compute: the number of years, for which the rate of profitability of the second investment exceeds that of the first

(b)

To determine

To compute: The net excess profit assuming that you invest in the second plan for the time period determined in part a.

(c)

To determine

To plot: The rate of probability curves $y=P_{{}_1}^{\text{'}}(t)$ and $y=P_{{}_2}^{\text{'}}(t)$ and shade the region whose area represents the net excess profit computed in part b.