Moneymaker has been offered a wonderful savings plan

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Reference no: EM131488477

At a military base in? Texas, Corporal Stan Moneymaker has been offered a wonderful savings plan. These are the? salesperson's words:? "During your 44?-month tour of? duty, you will invest ?$195 per month for the first 41 months. We will make the 42?th, 43?th, and 44th payments of ?$195 each for you. When you leave the? service, we will pay you ?$9,000 ?cash." Is this a good deal for Corporal? Moneymaker? Use the IRR method in developing your answer. Stan makes the assumption that the investment firm will pay him ?$9,000 when he leaves the service at the end of 44 months? (i.e., there is little risk? involved).

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Reference no: EM131488477

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