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You are the chief executive of an investment consulting firm, what would you advise to your client if their principal decision factor is net present
You are the chief executive of an investment consulting firm, what would you advise to your client if their principal decision factor is net present value in the following scenarios. Assume an unrestricted budget on 5% cost of capital.
Year | 0 | 1 | 2 | 3 | 4 |
Investment A | ($10,000) | 3,500 | 3,100 | 2,000 | 2,000 |
Investment B | ($5,000) | 1,750 | 3,250 | 3,000 |
A. Accept Both
B. Accept investment A
C. Reject both
D. Accept investment B
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