Assume That Two Investments Have a Three-Year Life and Generate

question 103

Multiple Choice

Assume that two investments have a three-year life and generate the cash flows shown below.Which of the two would you prefer?

• A)Investment A, since it has the most even cash flows
• B)Investment B, since it gives you the largest cash flows in earlier years
• C)Neither, since they both have equal lives
• D)Both investments are equally attractive

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Confidential

Pertains to information meant to be kept secret or private between individuals or parties.