Question
Alysha has to choose between two investments that have the same cost today. Both investments will ultimately pay $1,400 but at different times, as shown
Alysha has to choose between two investments that have the same cost today. Both investments will ultimately pay $1,400 but at different times, as shown in the table below. If Alysha does not choose one of these investments, she could leave the funds in a bank account paying 7 percent per year. Which investment should Alysha choose? (Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate calculations.) Year Investment A Investment B 1 $0 $200 2 $500 $400 3 $900 $800 Present value of Investment A $enter present value of investment A in dollars rounded to 2 decimal places Present value of Investment B $enter present value of investment B in dollars rounded to 2 decimal places Alysha would prefer select an investment
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