Problem

There are two investment plans in the market whose details are given below based on which you need to decide which investment plan you need to select. Propose which investment plan you prefer and why?

>>Plan A is a better investment plan because NPV of plan A is 0.6048 which is more than plan B which is equal to 0.0036
Formula: PV= S[1-(1+i)^-5
                     -------------
                            I
And NPV= PV - i

Elaborate

• Plan A is better investment
• Calculations and above correct answer