Two investment opportunities, A and B, are available to you. You can choose to invest in one or both or none. Here are the timelines of their cash flows:

Year A B

0 -$150 -225

1 40 175

2 80 125

3 100 -50

If the interest rate is 10%, then which investment(s), if any, would you take and why?

Answer rating: 100% (QA)

To determine which investments to take we can calculate the net present value NPV of each investment ... View the full answer