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16.Consider a number of similar investments and the partitioning of returns: PV of Operating Cash Flow PV of Residual PV Total Investment A $ 10,000
16.Consider a number of similar investments and the partitioning of returns:
PV of Operating Cash Flow | PV of Residual | PV Total | |
Investment A | $ 10,000 | $ 40,000 | $ 50,000 |
Investment B | $ 20,000 | $ 30,000 | $ 50,000 |
Investment C | $ 30,000 | $ 20,000 | $ 50,000 |
Investment D | $ 40,000 | $ 10,000 | $ 50,000 |
Which return profile is most risky?
A. Investment A
B. Investment B
C. Investment C
D. Investment D
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