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Assume that two investments have a three-year life and generate the cash flows shown below....

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Assume that two investments have a three-year life and generate the cash flows shown below. Which of the two would you prefer? Year Investment A Investment B 1 $5,000 $8,000 2 $5,000 $5,000 3 $5,000 $2,000 Select one: a. Neither, since they both have equal lives b. Both investments are equally attractive C. Investment B, since it gives you the largest cash flows in earlier years O d. Investment A, since it has the most even cash flows

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