You are given the opportunity of investing in one of three projects. Projects A, B and C

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You are given the opportunity of investing in one of three projects. Projects A, B and C require initial outlays of $20 000, $30 000 and $100 000 and are guaranteed to return $25 000, $37 000 and $117 000, respectively, in three years’ time. Which of these projects would you invest in if the market rate is 5% compounded annually?

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