The cash flows for four investments have been identified as follows: $$\begin{array} { l c c c c }
\text { Investment } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \begin{array} { l }
\text { Cash Flow Today } \
\text { in thousands of dollars }
\end{array} & - 8.0 & - 12.2 & - 6.0 & - 2.2 \
\begin{array} { l }
\text { Cash Flow in One Year } \
\text { in thousands of dollars }
\end{array} & 9.4 & 14.3 & 7.05 & 2.59
\end{array}$$ Based on the above information, and with an interest rate of 6%, which is the best investment?

Question

The cash flows for four investments have been identified as follows: $$\begin{array} { l c c c c } 
\text { Investment } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \begin{array} { l } 
\text { Cash Flow Today } \
\text { in thousands of dollars }
\end{array} & - 8.0 & - 12.2 & - 6.0 & - 2.2 \
\begin{array} { l } 
\text { Cash Flow in One Year } \
\text { in thousands of dollars }
\end{array} & 9.4 & 14.3 & 7.05 & 2.59
\end{array}$$ Based on the above information, and with an interest rate of 6%, which is the best investment?

Quizplus · Accepted Answer

The Answer is B

The Cash Flows for Four Investments Have Been Identified as Follows