Consider the following three investments: Investment 1: Invest $10,000 today and get $15,000 three years from now.

Question:

Consider the following three investments:

Investment 1:

Invest $10,000 today and get $15,000 three years from now.

Investment 2:

Invest $10,000 today and get $5,000 at the end of each of the next three years.

Investment 3:
Invest $10,000 today and get $2,500 at the end of every six months for three years.
If the cash flows from these investments have the same degree of uncertainty, which investment should you choose? Why?

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