Question: WG Investors are looking at three different investment opportunities Investment

WG Investors are looking at three different investment opportunities. Investment One is a five-year investment with a cost of $125 and a promised payout of $250 at maturity. Investment Two is a seven-year investment with a cost of $125 and a promised payout of $350. Investment Three is a ten-year investment with a cost of $125 and a promised payout of $550. WG Investors can only take on one of the three investments. Assuming all three investment opportunities have the same level of risk, calculate the annual return for each investment and select the best investment choice.


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  • CreatedMay 08, 2014
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