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1.3 Compare two investments Which of the following two investments is preferred if they can be repeated many times in the future? Investment A Investment

1.3 Compare two investments

Which of the following two investments is preferred if they can be repeated many times in the future?

Investment A Investment B

Initial Outlay 100 MSEK 150 MSEK Annual Net Cash Flows 20 MSEK 21 MSEK

Salvage Value 60 MSEK 100 MSEK

Lifespan of Project 5 years 10 years

Discount Rate 10% 10%

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