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Present value information for three investment alternatives is shown below: Investment alternative A B C Present value of cash inflows $ 125,000 $ 30,000 $
Present value information for three investment alternatives is shown below:
Investment alternative | A | B | C |
Present value of cash inflows | $ 125,000 | $ 30,000 | $ 80,000 |
Present value of cash outflows | $ 110,000 | $ 25,000 | $ 75,000 |
Based on this information alone
a) investment alternative A has the highest return on investment.
b) investment alternative B has the highest return on investment.
c) investment alternative C has the highest return on investment.
d) all three investment alternative are producing the same return on investment.
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