Monica wishes to assess whether she should invest in both or only one of the investments listed below. Her required annual rate of return is 8%. What would you recommend to Monica? 

	Investment Q	Investment R
Initial investment	$20,000	$12,000
End of Year	Income Stream
	Q	R
1 2 3 4	$4,000 $6,000 $7,000 $10,000	$5,000 $4,000 $4,000 $3,000

Answer rating: 100% (QA)

To assess whether Monica should invest in both investments or only one we need to compare the net pr... View the full answer