.
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 |
