A Firm Has Three Different Investment Options

question 160

Multiple Choice

A firm has three different investment options. Option A will give the firm $10 million at the end of one year, $10 million at the end of two years, and $10 million at the end of three years. Option B will give the firm $15 million at the end of one year, $10 million at the end of two years, and $5 million at the end of three years. Option C will give the firm $30 million at the end of one year, and nothing thereafter. Which of these options has the highest present value?

• A)Option A
• B)Option B
• C)Option C
• D)The answer depends on the rate of interest, which is not specified here.

---

Definitions:

Racing Fans

Individuals enthusiastically interested in automobile, horse, or various types of racing, often following events and supporting teams or athletes.

Content Producers

Individuals or entities responsible for creating and publishing digital or physical content, such as articles, videos, and podcasts.

Celebrities

Individuals who receive public attention and are widely recognized in the society due to their profession, achievements, or personal life.

#NoFoodWasted

A social media hashtag promoting the reduction of food waste through various means such as donation, recycling, and conscious consumption.