Explain and discuss on investment plan

Reference no: EM1311474

Discuss on investment plan.

Tiger Travel agrees to purchase a new aircraft. They can either pay $12,500,000 today, $16,000,000 3 years from now, or 8 equal annual instalments of $2,225,000 (with the first payment due one year from now). Given an annual rate of interest of 9% which option should Tiger Travel take? Explain.

Reference no: EM1311474

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