choose the correct option

Application of PV in Annuities Suppose you are given an option to invest money in two annuity schemes: Scheme A and Scheme B. In Scheme A, you would need to make an initial investment of 1.2 lakh, and you would receive an annual cash inflow of 35,000 for the next four years. In Scheme B, you would need to make the same initial investment but would receive an annual cash inflow of 30,000 for the next five years. Which of the following options would you choose, given that the discount rate is 10%? Which of the following options would you choose, given that the discount rate is 10%? Scheme A Scheme B Neither Both