Roger has the opportunity to invest 100,000 in two different assets. The investment in asset 1 will have a present value of 120,000. The investment in asset 2 is expected to have a value of 140,000 in four years. If the market interest rate is 5 percent a year, which one would be the better investment?
a) Asset 1
b) Asset 2
c) Both are equally good
d) Cannot be determined.
