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. The company can either undertake the development of new software for which it can sign a contract now to sell it for R2500 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.

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