NO.PZ2023080903000040
问题如下:
If you seek an 8 percent annual return on investment and have $500,000 to invest, which of the investment choices presented in Table A should you favor?
Table A: Investment Options
| Investment | Initial Investment ($) | Year 1 Cash Flow ($) | Year 2 Cash Flow ($) | Year 3 Cash Flow ($) |
|--------------|------------------------|----------------------|----------------------|----------------------|
| Option 1 | -500,000 | 200,000 | 200,000 | 200,000 |
| Option 2 | -500,000 | 230,000 | 200,000 | 160,000 |
选项:
A. Option 1
Option 2
It doesn't matter; both options are equally attractive.
解释:
For Option 1:
NPV=200000/1.08+200000/1.082 +200000/1.083 -500000
=15,419.4
For Option 2:
NPV=230000/1.08+200000/1.082 +160000/1.083 -500000=11,443.9
If you seek an 8 percent annual return on investment and have $500,000 to invest, which of the investment choices presented in Table A should you favor?
Table A: Investment Options
| Investment | Initial Investment ($) | Year 1 Cash Flow ($) | Year 2 Cash Flow ($) | Year 3 Cash Flow ($) |
|--------------|------------------------|----------------------|----------------------|----------------------|
| Option 1 | -500,000 | 200,000 | 200,000 | 200,000 |
| Option 2 | -500,000 | 230,000 | 200,000 | 160,000 |