Question
You have been tasked to determine the best investment between the following investments. Description Investment A Investment B Interest rate 6% 8% Cashflow year 1
You have been tasked to determine the best investment between the following investments.
| Description | Investment A | Investment B |
| Interest rate | 6% | 8% |
| Cashflow year 1 | R10 000 | 0 |
| Cashflow year 2 | R7 000 | R14 000 |
| Cashflow year 3 | R8 500 | R10 000 |
| Cashflow year 4 | R3 500 | R2 00 |
Question:
Which of the two investments has a better return? Provide calculations for both potential investment options. (30 marks)
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Principles Of Commercial Real Estate Finance
Authors: Gail Ramshaw, Mortgage Bank
1st Edition
0793157099, 9780793157099
