A Firm Has Three Different Investment Options,each Costing $10 Million

question 49

Multiple Choice

A firm has three different investment options,each costing $10 million.Option A will generate $12 million in revenue at the end of one year.Option B will generate $15 million in revenue at the end of two years.Option C will generate $18 million in revenue at the end of three years.Which option should the firm choose?

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

---

Definitions:

Asian Tigers

Refers to the economies of Hong Kong, Singapore, South Korea, and Taiwan, which underwent rapid industrialization and maintained exceptionally high growth rates in the second half of the 20th century.

Industrial Market Economies

Countries or regions characterized by industrialized economic systems based on market principles, where goods and services are produced and exchanged according to supply and demand.

Hong Kong

A Special Administrative Region of China known for its vibrant economy, bustling port, and status as a global financial center.

Singapore

Singapore is a sovereign city-state and island country in Southeast Asia, known for its highly developed and diversified economy, strategic location, and strict regulations.