# Question

Two investments offer a series of cash payments over the next 4 years, as shown in the following table:

a. What is the total amount of money paid by each investment over the 4 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?

a. What is the total amount of money paid by each investment over the 4 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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