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The cash flows for four investments with an economic life of 4, 5, 5 and 6 years, respectively, are as follows: A B C D
The cash flows for four investments with an economic life of 4, 5, 5 and 6 years, respectively, are as follows: A B C D ko -1000 -1000 -1000 -1000 k1 330 280 270 260 k2 330 280 270 260 k3 330 280 310 260 k4 530 280 310 260 k5 480 480 260 ko 460 The discount rate for all investments is 12%. Which of the four investments is best financially if it is assumed that you can repeat the investments, je if you choose A you will make that investment at time 0,4,8, ... and if you choose B you will make that investment at time 0, 5, ... etc.? Choose one option: . C A B . D
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