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What is the total amount of money paid by each investment

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Question: Two investments offer a series of cash payments over the next four years, as shown in the following table.

Investment            Year 1         Year 2        Year 3        Year 4

      1                     $100           $200          $300          $400

      2                     $250           $250          $250          $250

a. What is the total amount of money paid by each investment over the four years?

b. From a time value of money perspective, which of these investments is more attractive?

c. Can you think of a reason why investors might prefer Investment 1?

Reference no: EM131624242

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