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You are being presented two independent investment opportunities.The first investment will see you invest $500 today in government bonds and receive $750 in five years.
You are being presented two independent investment opportunities.The first investment will see you invest $500 today in government bonds and receive $750 in five years. The second investment you invest $300 today and another $250 in five years. For this investment you will receive $500 in three years. Based on MARR of 5% and knowing you have sufficient funds to allow you to invest in either or both opportunities, should you invest in option one, two, both or neither ? Ma ke your decision based on rate of return analysis.
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