You have to make a choice between 3 investment alternatives. Alternative 1 will provide you with returns of $300 000 at the end of the 2nd year and $700 000 at the end of 5th year. Alternative 2 will provide you with returns of $180 000 at the end of each of the next 6 years. Alternative 3 will provide you with returns of $370 000 at the end of 2nd, 4th and 6th years. Which alternative is preferable if money is worth 9.4%?

Alternative 2 or 3 as they are essentially the same

Alternative 3

Alternative 2

Alternative 1