Question

The B Company has a policy of requiring a rate of return on investment of 16%....

The B Company has a policy of requiring a rate of return on investment of 16%. Two investment alternatives are available but the company may choose only one. Alternative 1 offers a return of $50 000 after 4 years, $40 000 after 7 years, and $30 000 after 10 years. Alternative 2 will return the company $750 at the end of each month for 10 years.How much is the investment from Alternative 1? Round answer to zero decimal places.How much is the investment from Alternative 2? Round answer to zero decimal places.Which alternative is preferred?

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