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The cash flows for four investments with economic lives of 4, 5, 5 and 6 years respectively are as follows: A B C D k

The cash flows for four investments with economic lives of 4, 5, 5 and 6 years respectively are as follows:

A

B

C

D

k0

-2100

-2200

-2300

-1500

k1

750

650

600

400

k2

750

650

600

400

k3

750

650

700

400

k4

1000

650

700

400

k5

1000

1100

400

k6

800

The calculation interest rate for all investments is 10%.

Which of the four investments is the best financially if it is assumed that you cannot repeat the investments and you have a lack of funds (money)? A, B C or D?

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