Assume you have two investment opportunities that return the following cash flows: Year 1 Opportunity A $50,000 Opportunity B $0 Year 2 $50,000 $0 Opportunity A Opportunity B Year 3 $50,000 $150,000 Assume the opportunity cost (discount) rate is 10% and the initial cost of the two investments is the same as well as the risk involved with each one. Which of the two investments would be preferred from a present value standpoint?

Assume you have two investment opportunities that return the following cash flows: Assume the opportunity cost (discount) rate is 10% and the initial cost of the two investments is the same as well as the risk involved with each one. Which of the two investments would be preferred from a present value standpoint? Opportunity A Opportunity B