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Which investment should choose and why

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Reference no: EM132556474

Question 1: Consider the following three investment options:

Investment 1: Invest $10,000 today and get $15,000 three years from now.

Investment 2: Invest $10,000 today and get $5,000 at the end of each of the next three years.

Investment 3: Invest $10,000 today and get $2,500 at the end of every six months for three years. If the cash flows from these investments have the same degree of uncertainty, which investment should you choose? Why?

Reference no: EM132556474

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