On Wed, Apr 13, 2011 at 2:49 PM, ●●Binish_Awais●● < greyferry@gmail.com > wrote: mgt201 gdb idea (shared one ) This is annuity concept so first we bring all the values to one common point and then compare. Here first we find the present value of Alternative A and then find the present value of B and compare which ever is higher that will be acceptable. Value of alternative A= =4000/1.11+4000/(1.11^2)+4000/(1.11^3)+4000/(1.11^4)+4000/(1.11^5)+4000/(1.11^6)+4000/(1.11^7)+4000/(1.11^8)+4000/(1.11^9)+4000/(1.11^10) = 23556.93 Value of alternative B= 54000/(1.1^10) = 20819.34 Alternative that is acceptable= Option A Reason= Because Option A will be higher in present value than option B thanks to zeeshan -- ●●Gяєу_Fєяяy ●● Mo00 ∂y _ ∂ oll -- We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com , To post to this group, send email to vuaskari_com@googlegroups.com Visit thes...
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