uppose you had the following propositions of returns from two companies W and Y:   Company Returns (OMR) Comments W 1204 Company W proposes to give 1204  Rial today Y 1550 Company Y proposes to give you 1550  but after 2 years You also know that the Interest Rate is by 10%. Question: In which company do you choose to invest your money and why?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 6DQ
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uppose you had the following propositions of returns from two companies W and Y:

 

Company

Returns (OMR)

Comments

W

1204

Company W proposes to give 1204  Rial today

Y

1550

Company Y proposes to give you 1550  but after 2 years

You also know that the Interest Rate is by 10%.
Question: In which company do you choose to invest your money and why?

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