Categories
Uncategorized

Which investment option would you choose?

Please write at least a three paragraph reply to the following questions. Also reply to the posts of at least two fellow students. Each of your replies should be at least a paragraph long.
Which one of the following two investment options would you choose that each require an initial investment of $4,000. Option A returns $1,000 at the end of each four years; option B returns $4,000 at the end of the fourth year?
Would your answer change if in year 5, option A will produce an additional cash inflow of $5,000 but that option B will never generate another dollar after the fourth year?
Will your preference for option A or B change usiiqung only the payback method?; Why?

Leave a Reply

Your email address will not be published. Required fields are marked *