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3. The following information are given for three investment opportunities (A,B,C) which require equal amount of investments at time zero but with different annual net
3. The following information are given for three investment opportunities (A,B,C) which require equal amount of investments at time zero but with different annual net cash inflows on years 1 to 5. Conceptually, which investment is most favorable to the firm considering time value of money? Justify (15 points) . Time 0 (4,000,000) Yr 1,000,000 42 1,000,000 Y3 1,000,000 Yr4 1,000,000 Y15 1,000,000 . YU Time 0 (4,000,000) Y2 800,000 413 1,000,000 Yr4 1 200,000 500.000 Y15 1,500,000 C. Y12 Time 0 (4,000,000) Y1 1,500,000 1,200,000 Y3 1.000.000 Yr4 800,000 Y15 500.000
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