Which investment should Sammy choose?
Sammy is endowed with $10,000,000 and is considering whether to invest in a business venture. Perfect capital markets, interest rate of 6%.
Investment A-1 million, End of year cash flow-1.8 million
Investment B-2 million, End of year cash flow-3.3 million
Investment C-3 million, End of year CF-4.4 million
Investment D-4 million, End of year CF-5.4 million