Compare the Alternatives Shown Below on the Basis of Their

question 12

Essay

Compare the alternatives shown below on the basis of their future worth, using an interest rate of 18% per year. Which alternative should be selected? $$\begin{array} { l | c | c | c } \hline \text { ernative } & \mathbb { M } & \mathbb { N } \\\hline \text { tial costs } & \$ 238,000 & \$ 213,000 & \$ 293,000 \\\hline \text { nual revenues } & \begin{array} { c } \$ 69,000 \text { in year } 1 , \\\text { increasing by } \$ 190 \\\text { each year }\end{array} & \$ 114,000 & \begin{array} { l } \$ 69,000 \\\text { in years } 1 \text { to } 5 , \\\$ 69,570 \\\text { in years } 6 \text { to } 16\end{array} \\\hline \text { nual expenses } & \$ 20,000 & & \$ 20,000 \\\hline \text { vage value } & \$ 6000 & \$ 25,000 & \$ 6000 \\\hline \text { e, years } & 16 & \$ 9000 & 16 \\\hline\end{array}$$

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Underwriter's Buying Price

The price at which an underwriter purchases securities from the issuer to resell in a public offering.

Oversubscription Privilege

Allows shareholders to purchase unsubscribed shares in a rights offering at the subscription price.

Rights Offering

An opportunity for existing shareholders to purchase additional shares of a company at a predetermined price before the company offers them to the general public.

Underwriting Provision

A term in an agreement that outlines the responsibilities and risks taken by an underwriter in facilitating a public offering of securities.