Make the two investments equally attractive

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Reference no: EM131603128

Consider the following two investment alternatives, in which Alternative II is more economically attractive than Alternative I: Alternative I Alternative II Initial Investment $10,000 $40,000 Useful life 5 years 10 years Terminal market value $1,000 $5,000 Annual expenses $14,750 $7,000 EUAC (12%), approx. $17,367 $13,800 Determine the percent change in the annual expenses for Alternative I that would make the two investments equally attractive. (Enter your answer as a positive or negative number without the percent % sign.)

Reference no: EM131603128

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