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project Today's flow Flow in 1 year A -10 15 B 10 -8 C -15 20 D 10 -15 Question 1: Suppose the risk-free interest

project

Today's flow

Flow in 1 year

A -10 15
B 10 -8
C -15 20
D 10 -15

Question 1: Suppose the risk-free interest rate is 10%. Of the 4 projects above, Where should you invest if you only have to choose one?

Question 2: Suppose the risk-free interest rate is 10%. Of the 4 projects above, where should you invest if you have to choose two?

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