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Rickos Rickos
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6 years ago
Assume that two investments have a three-year life and generate the cash flows shown below. Which of the two would you prefer?

   Year   Investment A   Investment B
   1   $5,000   $8,000
   2   $5,000   $5,000
   3   $5,000   $2,000

A) Investment A, since it has the most even cash flows
B) Investment B, since it gives you the largest cash flows in earlier years
C) Neither, since they both have equal lives
D) Both investments are equally attractive
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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LutionalLutional
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6 years ago
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Rickos Author
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6 years ago
I want to thank you for being so helpful
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