You are comparing two investments, each of which pays 8.5 pe…
You are comparing two investments, each of which pays 8.5 percent interest, compounded annually. Both options will provide you with $39,000 of cash inflow. Investment Alpha pays $9,000 the first year followed by two annual payments of $15,000 each. Investment Omega pays three annual payments of $13,000 each. Which one of the following statements is accurate?