.
Kent Weitz wishes to assess whether the following investments are satisfactory. Use his required return (discount rate) of 17% to evaluate each investment. Make an investment recommendation to Kent.
Investment ($) | ||
---|---|---|
A | B | |
Purchase Price | $13,000 | $8,500 |
End of Year | Income Stream | |
1 | $2,500 | $4,000 |
2 | $3,500 | $3,500 |
3 | $4,500 | $3,000 |
4 | $5,000 | $1,000 |
5 | $5,500 | $ 500 |