Firm has three different investment options, each costing $10 million. option a will generate $12 million in revenue at the end of one year. option b will generate $15 million in revenue at the end of two years. option c will generate $18 million in revenue at the end of three years. which option should the firm choose?

Question

Alessandro Mccall

Business

31 July, 02:14

Firm has three different investment options, each costing $10 million. option a will generate $12 million in revenue at the end of one year. option b will generate $15 million in revenue at the end of two years. option c will generate $18 million in revenue at the end of three years. which option should the firm choose?

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Answers (1)

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Dylan Harvey · Answer 1

Option a in order to get highest profit a year

a: 12 million a year

b: 15 : 2 = 7.5 million a year

c: 18 : 3 = 6 million a year.

to get most revenue, option a is the best choice