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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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