Two investments offer a series of cash payments over the next four years, as shown in the

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Two investments offer a series of cash payments over the next four years, as shown in the following table.

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a. What is the total amount of money paid by each investment over the four years?

b. From a time value of money perspective, which of these investments is more attractive?

c. Can you think of a reason why investors might prefer Investment 1?

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Fundamentals Of Investing

ISBN: 9781292153988

13th Global Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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