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Assume you are about to make an investment to an energy company. Investment to company A costs 1,000,000 USD today and pays back 3,000,000 five
Assume you are about to make an investment to an energy company. Investment to company A costs 1,000,000 USD today and pays back 3,000,000 five years from now. Investment to company B costs 800,000 USD today and pays back 450,000 each year for five years. If an interest rate of 10% is used, which energy company should you choose to invest? Present worth of investment A: USD Present worh of investment B: USD Choose
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