MGT201 Financial Management Spring 2011 GDB 1 Idea Solution 14 April

[Xpert]

Option 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

Option B
= 54000/(1.1^10)
= 20819.34