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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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