Why did you use the formula to make the decision

Assignment Help Business Management
Reference no: EM132652131

Your rich uncle has offered you a choice of one of the following three alternatives: RM10,000 now; RM2,000 a year for eight years; or RM24,000 at the end of eight years.

Required:

(i) Calculate which of the above options should you choose if you could earn 12 percent annually.

(ii) From part (i) above, explain the reason why did you use the formula to make the decision.

Reference no: EM132652131

Questions Cloud

What is the duration and convexity of the portfolio : Assume you have a portfolio zero coupon bonds. The first bond is 15 year bond with yield of 3.5% and the other bond is 5 year bond with a yield of 2.8%.
What is the mortgage period payment : Assume a mortgage with a principal of 100000 paying every 4 months. The maturity of the mortgage is 2 years and its yield is 3%.
Qualitative and quantitative risk management techniques : What are the merits and demerits of qualitative and quantitative risk management techniques?
Write about the nursing theory by describing the theory : For your first essay, you will need to write at least 500 words in APA formatting about a nursing theory. There are several theories for nursing practice.
Why did you use the formula to make the decision : Your rich uncle has offered you a choice of one of the following three alternatives: RM10,000 now; RM2,000 a year for eight years; or RM24,000 at the end of eig
Risk management covers response-monitoring-controlling : Risk management covers response, monitoring, controlling, prevention, and so forth. Above all else, it is concerned with project impact.
Analyze and apply quality management concepts : Analyze and apply Quality Management concepts in the areas relating to the Specialization - Select and apply appropriate techniques for achieving quality
Discuss five factors in investment of surplus funds : Discuss FIVE (5) factors that must be considered in the investment of surplus funds.
What are the therapeutic actions for diltiazem : Chapter 43, Drugs Affecting Blood Pressure 50 points if all questions are answered correctlyA staff nurse has to administer medications for blood pressure.

Reviews

Write a Review

Business Management Questions & Answers

  Unethical practices-strategies of multinational corporations

Discuss at least two (2) strategies that multinational corporations (MNCs) can undertake in order to make profit by leveraging the growing consumer demand.

  What is the rate of return

What is the value of $100 deposited into an account collecting APR of 12% and compounding monthly after 1 year? What is the rate of return?

  Compute the future value

Compute the future value of $1000 at 10% compounded annually for 6 years.b)Compute the present value of $1000 due in 4 years at 15%, compounded semiannually.

  Measure the success of a fundraising office

Explain why one should be cautious when using a contributions ratio to measure the success of a fundraising office.

  Externalities and the environment

Meyer describes the "Tragedy of the Commons." The IMF article explains how this type of problem is an example of an "externality." What is an externality? What might be a good government policy to solve the problem of the environmental externalit..

  Management position in organization

Interview a HR leader or another leader in a management position in your organization about a recent change in the organization.

  What examples do you have in forecasting for cash needs

The ability to forecast the upcoming needs is important - but probably the most important, yet often overlooked need is that of cash.

  City of jayhawk kansas geodatabase development

This fictional project information can be used to create a project charter for the City of Jayhawk Kansas Geodatabase Development Project.

  Dimension of general external environment

In what ways might Starbucks sustainable efforts be affected by events in each dimension of its general external environment?

  Summarize the major reasons why businesses

1) Summarize the major reasons why businesses are partnering with third-party data centers?

  Create new worksheets for each of the other expenses

Create new worksheets for each of the other expenses and do the appropriate work to arrive at the figures that you will include in the table

  Legal-ethical issues affecting manager/employee relations

Demonstrate understanding of legal-ethical issues affecting manager/employee relations. Evaluate communication channels that can contribute to employee conflict

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd