A superannuation fund can earn j1 = 10% p.a.with investments in government securities. Determine which of the following investments the fund should accept if the initial investment required is $100,000 in each case.
End of year net cash flow:
|
Project
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year
|
|
L
|
25000
|
25000
|
25000
|
25000
|
25000
|
|
M
|
10000
|
30000
|
40000
|
30000
|
10000
|
|
N
|
-80000
|
40000
|
50000
|
60000
|
70000
|
|
O
|
70000
|
50000
|
30000
|
0
|
-30000
|