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Your Company proposes to buy an asset for $20,000. This investment is very safe. You would sell off the asset in four years for $30,000.
Your Company proposes to buy an asset for $20,000. This investment is very safe.
You would sell off the asset in four years for $30,000. You know you could invest the $20,000 elsewhere at 10 percent with very little risk. What do you think of the proposed investment?
Select one:
a. This is a good investment since if you invest the $20,000 elsewhere it will grow to $29,282 compared to the proposed investment of $30,000.
b. All answers are wrong
c. This is not a good investment since you can invest the $20,000 elsewhere and it can grow to $29,282 compared to the proposed investment of $30,000.
d. This is not a good investment since you can invest the $20,000 elsewhere and it can grow to $43,923 compared to the proposed investment of $30,000.
e. This is a good investment since if you invest the $20,000 elsewhere it will grow to $43,923 compared to the proposed investment of $30,000.
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