Question
Tom Alexander has an opportunity to purchase any of the investments shown in the following. The purchase price, the amount of the single cash inflow,
Tom Alexander has an opportunity to purchase any of the investments shown in the following. The purchase price, the amount of the single cash inflow, and is year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investment. Investment A: today price$18000, single cash inflow $30000, year of receipt 5 Investment B: today price$600, single cash inflow $3000, year of receipt 20 Investment C: today price$3500, single cash inflow $10000, year of receipt 10 Investment D: today price$1000, single cash inflow $15000, year of receipt 40
A. Investment C and D
B. Investment B and C
C. Investment A and B
D. Investment A and C
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