Cash Flows for Two Investments
Year	Commodity A	Commodity B
0
1	30,000	30,000
2	40,000	30,000
3	50,000	30,000
	60,000	20,000

Project
Commodity A	180,000	90,000	22,500
Commodity B	110,000	90,000	5,000

1.a. Complete the table above in the right to calculate simpler rate of return for commodity and . Assume that your initial investment fully depriciates. 1.b. If the you requrired to have a return of . In this case, which commodity would you choose and why? The commodity that I would choose would be Commodity A as it has the highest Simple Rate of Return and is the closest to . For cash flows it would be better to have a higher rate of return than a lower rate