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?
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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e21c8b7-0dc5-40e2-a216-2310a85a5f20%2F8f7ee2d3-4592-427c-a389-fce252d56751%2F8mnixm9_processed.png&w=3840&q=75)
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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