.

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