An investment of 40,000 made on 01/04/10 provides inflows as follows:
| Date | Alternative I | Alternative II |
| 01/04/11
01/04/12 01/04/13 01/04/14 |
20,000 10,000 10,000 10,000 |
10,000 20,000 10,000 10,000 |
Which alternative would you prefer if the investor’s expected return is 10% give reason(s) for your preference?
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