you are evaluating two investments:

the first investment requires %100,00 initial investment and promises $30,00 in year 1, $50,00 in year 2 and $40,00 in year 3.

 

The second investment requires $80,000 initial investment and promises $20,000 in year 1, $30,000 in year 2, $20,000 in year 3 and $30,000 in year 4.

 

If your cost of capital is 8%, which would you?