Solutions to Questions and Problems
A better method of comparison would be to express the cost of hiring each player on an annual basis. This type of problem will be investigated in a later chapter. 43. PVA = 0.80($1,450,000) = $9,800 [ {1 – [1 / (1 + r)]360}/ r ]; solving on a financial calculator, or by trial and error, gives r = 0.7962% per month ................
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