Based on the above information, and with an interest rate of 5%, which is the best investment?
The cash flows for four investments have been identified as follows:
Investment A B C D
Cash Flow Today
in thousands of dollars -8.0 -12.2 -6.0 -2.2
Cash Flow in One Year
in thousands of dollars 9.4 14.3 7.05 2.59
A) Investment A
B) Investment B
C) Investment C
D) Investment D
Answer: B
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