Assume that the 86000 not invested in option a would be


Juan has $100,000 to invest and he has narrowed down his decision to two investments. Option A returns 50% annually for 3 years, but the maximum investment he can make is $14,000. Option B returns 11% annually for 3 years and would require the entire $100,000. Which option produces the best result for Juan and what is the benefit over the lesser option? Assume that the $86,000 not invested in Option A would be placed in a safe deposit box earning no interest.

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Financial Management: Assume that the 86000 not invested in option a would be
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