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Question 4 (15 points): Your company has $200,000 to invest and has identified the following three investments: Investment A requires an initial investment of $
Question 4 (15 points): Your company has $200,000 to invest and has identified the following three investments: Investment A requires an initial investment of $ 130,000 and has an annual rate ofreturn of 12%. Investment B requires an initial investment of $70,000 and has an annual rate ofreturn of 16%. Investment Crequires an initial investment of $30,000 and has an annual rate ofreturn of 27%. Unused funds will be placed in a bank account with an annual percentage rate of 4.5%. You may invest in each of the investments only once. All of the investments have a life of one year. a. Draw the cash flow diagrams for each investment b. Compute the benefit-cost ratio for each investment option. C. Which project (or combinations) should the company select? Explain your
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