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Two investments offer a series of cash payments over the next four years, as shown in the following table. investment year 1 Year 2 Year
Two investments offer a series of cash payments over the next four years, as shown in the following table.
investment year 1 Year 2 Year 3 Year 4
1 $100 $200 $300 $400
2 $250 $250 $250 $250
A) what is the total amount of money paid by each investment over the four years?
B) From a time value of money perspectives, which of these investments is more attractive?
C) Can you think of a reason why investors might prefer Investment 1?
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