Comparison of Future Cash Availability Dolphin Corporation plans to make an annual cash deposit for 12 years in a medical health program for retired employees. It can deposit $60,000 at the end of each year in a very safe investment and earn a 6 percent return annually. As an alternative, it can deposit $52,000 at the end of each year in a riskier investment, but earn a 9 percent return.

a. Which investment will result in the largest cash balance at the end of 12 years, assuming the expected rate of return is earned each year?

b. What other factors should be taken into consideration in deciding which alternative to pursue?