In Exercise 23, what is the smallest return in year 1 of Plan A that would make Plans A and B equally lucrative? Answer the same question for year 4.
Exercise 23
Suppose for an initial investment of $10,000, Plan A gives end-of-year returns $3000, $5000, $7000, $1000, and, for the same investment, Plan B gives end-ofyear returns $3500, $4500, $6500, $1500. Determine which plan is best.
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