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

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

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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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

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

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