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Chitagu Project Consultants recently completed a certain project for one of the clients which yielded a profit of R1.2 million. The consulting firm now has
Chitagu Project Consultants recently completed a certain project for one of the clients which yielded a profit of R1.2 million. The consulting firm now has the choice to either spend the project profit or take on a new project. The company can either develop a new software program for which it can sign a contract now to sell it in 4 years for R1.7 million. Alternatively, it can invest the project income in short term securities where it can earn 12% per annum. Determine the value of the alternative investment and choose the most correct option below. A. R1 200 000; it would be better to invest the proceeds. B. R1 700000 , it would be better to develop the software. C. R1 888223 , it would be better to invest the profits. D. R2 674983 , it would be better to develop the software
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