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Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require...

Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now; the other would require the $40,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 10%, what should you do with the $40,000 you have?

Year Alternative 1 Alternative 2
0 -$40,000 $0
1 $10,000 $0
2 $10,000 -$40,000
3 $10,000 $16,500
4 $10,000 $16,500
5 $13,000 $16,500

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ekkarill92 answered 2 years ago
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