question archive A company has two investment opportunities:  Alternative A returns $36,000 now, $20,000 in two years and $8,000 in four years

A company has two investment opportunities:  Alternative A returns $36,000 now, $20,000 in two years and $8,000 in four years

Subject:EconomicsPrice: Bought3

A company has two investment opportunities:

 Alternative A returns $36,000 now, $20,000 in two years and $8,000 in four years.

Alternative B returns $1,470 at the end of every month for four years.

The required rate of return is 8.5% compounded semi-annually. Using the discounted cash flow (DCF) method, which alternative is preferable? 

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