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Deniz wants to invest her money so that in 4 years her earnings have the same buying power as # 100,000 today. She expects the
Deniz wants to invest her money so that in 4 years her earnings have the same buying power as # 100,000 today. She expects the inflation to be 7% per year and to earn an annual market rate of 10% on her investments. How much must she invest each year to reach her goal? At the end of 4 years, she wants to put all the money she made into promising projects that she lists on the table below. What are her possible options? How can she invest to make the most profit? Project Initial Investment, t Life, Years Annual Net Revenue, t per Year A B 90,000 50,000 60,000 8 10 5 20,000 10,000 15,000
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