Schedules of disbursements

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Two alternative courses of action have the following schedules of disbursements. The first alternative spends $1,300 now and no more. The second does not spend anything now but one year later spends $100, the following year an additional $200 and $300, $400 and $500 for years three, four and five. Based on a 6% interest rate, which alternative should be selected?

Reference no: EM131284702

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