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In: Economics

ABC Global Technologies is exploring investment opportunities for $10 M. The company would like to maximize...

  1. ABC Global Technologies is exploring investment opportunities for $10 M. The company would like to maximize the return on this investment. Four investment opportunities being explored are for a period of 10 years. Help the company choose the best investment opportunity.
  1. 10% compounded quarterly.
  2. 9.95% compounded daily.
  3. 9.85% compounded monthly.
  4. 9.80% compounded continuously.

Solutions

Expert Solution

to compare we need to calculate the effective rate of all the options

--------

option 2 has the highest rate, so option 2 is the best investment alternative.

i)

ii)

iii)

iv)

Rahul Sunny answered 2 years ago
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