Question

You're trying to choose between two different investment, both of which have up – front costs of $45,000. investment g returns $75,000 in six years. investment h returns $105,000 in 9 years. which of these investments has the higher return?

Answer 1

Amount invested in both schemes is $45,000
returns in investment g is 75,000 in 6 years.
yearly return is:
75000/6=12,500

returns in investment h is 105,000 in 9 years
yearly return is:
105,000/9
=11,666.67

from the above results we can conclude that investment g has the higher returns.