What will your decisions


Problem

a) Suppose your mother countered the offer of your uncle's 6% with 8% with cash streams of Yr1 (50), meaning loss, Yr2 25, Yr3 50, Yr4 75, Yr5 100. Evaluate if the initial investment required is $125.

b) If your uncle retracted his offer. Hence, you're left between deciding between the broker's offer and your mom's, what will your decisions?

c) Since the broker will have to compete with your family, he raised his offer to 16%, what now?

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Finance Basics: What will your decisions
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