Question: Futuretech Ltd. recently completed a project for a client which yielded a profit of R2 000 000. The company now has the opportunity to either

Futuretech Ltd. recently completed a project for a client which yielded a profit of R2 000 000. The company now has the opportunity to either invest the profits from the project or to take on a new project and using the funds for the new project. The company can either undertake the development of new software for which it can sign a contract now to sell it for R2 500 000 in 3 years time. Alternatively, it can invest the money a money market account where it can earn 15% per year. Determine the value of the investment alternative and choose the most correct option below.

A. R2 000 000; it would be better to invest the proceeds.

B. R2 500 000, it would be better to develop the software.

C. R3 041 750, it would be better to invest the profits.

D. R3 041 750, it would be better to develop the software

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