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5. You have the following choices for investing the $20 000 you have saved. C) To place them in the bank which offers 6% interest
5. You have the following choices for investing the $20 000 you have saved. C) To place them in the bank which offers 6% interest compounded annually. D) To invest the amount | a project that is guaranteed a profit of $2750 after 2 years (mr=5%). d) If you choose A, what is the amount you would have after 2 years? e) If you choose B, what is the IRR and NPV of your investment? f) Which investment should you choose? 1
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