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Assume, you have a choice between two investments that both cost \$1000 each, however investment A pays \$20 a year and \$950 at the end of year 5 but investment B pays \$10 a year and \$1000 at the end of the 5 years. Which investment should I choose based on it offering a better return?

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closed as off-topic by Bob Jansen May 9 '16 at 15:57

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – Bob Jansen
If this question can be reworded to fit the rules in the help center, please edit the question.

  • $\begingroup$ zhqiat makes a good suggestion but this type of question is not appropriate for this site, please see the faq. $\endgroup$ – Bob Jansen May 9 '16 at 15:58
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Why don't you calculate the IRR of each investment? (aside from all the issues with IRR).

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