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Problem 2-10 points Your grandfather and grandmother give you $15,000 and ask that you invest...

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Problem 2-10 points Your grandfather and grandmother give you $15,000 and ask that you invest in one of three different areas: real estate, bonds, or stocks. If you invest the entire amount in of these with the expected cash flows shown below, which investment offers the highest NPV? Assume that an 7% discount rate would be good for all three investments. Cash Inflows Investmen Year 1 Year 2 Year 3 Year 4 Year 5 t Real $2,00 $2,00 $2,00 $2,00 $11,00 Estate 0 0 0 0 0 Bonds $1,50 $1,50 $1,50 $1,50 $11,00 0 0 0 0 0 Stock $3,00 $3,10 $3,50 $2,60 $8,000 Market 0 0 0 0 Please state any assumptions you are making in your answers

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