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Sam has 2 investment projects. Cost at t=0 Payoff at t=1 project A 2,500 2800 project B 1,600 1700 Sam has $10,000 from his Dad.
Sam has 2 investment projects.
Cost at t=0 Payoff at t=1
project A 2,500 2800
project B 1,600 1700
Sam has $10,000 from his Dad. If the interest rate is 10%, what should be Sam's investment decision?
invest in A only
invest in neither
invest in B only
invest in both
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