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Suppose you want to make an investment of $5,000, and you have two funds to choose from: Fund A and Fund B. Fund A will
Suppose you want to make an investment of $5,000, and you have two funds to choose from: Fund A and Fund B. Fund A will give you a return of $5,250 after a year. Fund B will give you a return of $1,200 per year in 5 annual installments. Consider the annual interest rate to be 2%. Based on the present value of the two future inflows, which of the two funds should you choose to invest your money in
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