Investment A : amount required today is $452,952.47. Average rate of return=2.00%

Investment B : Today deposit required = $431,383.31 Average return required = 3%

Investment C: the investment will cost $487,811.99 today.

Question: A fourth investment, D, which is structured to mature with a value of $500,000 at the end of five years and has no interim cash flows, earns 0.45% every quarter.

Would this investment be more attractive than the other 3? Support your conclusion with appropriate calculations. Please provide both the formula method and excel method

Answer rating: 100% (QA)

Answer Investment D is more attractive than the other 3 investments ... View the full answer