A firm must choose between two investments. Investment A requires an initial outlay of $225,000 and returns $70,000 per year for six years. Investment B requires an initial outlay of $350,000 and returns $90,000 per year for six years. If money earns 9% compounded annually, which investment should the firm select?

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The Answer of A firm must choose between two investments. Investment A requires an initial outlay of $225,000 and returns $70,000 per year for six years. Investment B requires an initial outlay of $350,000 and returns $90,000 per year for six years. If money earns 9% compounded annually, which investment should the firm select?

A Firm Must Choose Between Two Investments