A contractor has two options; (l) : Invest his money in project A or (II) : Invest his money in project B. If he decides to invest in A, for every rupee invested, he is assured of doubling his money in ten years. If he decides to invest in B, he is assured of making his money 1.5 times in 5 years. If the contractor values his money at 10% interest rate, he A. Should invest in neither of the two projects B. Could invest in either of the two projects C. Should invest in project A D. Should invest in project B

The correct answer is: C. Should invest in project A

Project A offers a better return on investment than project B. If the contractor values his money at 10% interest rate, he should invest in project A.

Here is a detailed explanation of each option:

• Option A: Should invest in neither of the two projects.

This option is not correct because both projects offer a positive return on investment. Project A offers a 100% return on investment in 10 years, while project B offers a 50% return on investment in 5 years.

• Option B: Could invest in either of the two projects.

This option is not correct because project A offers a better return on investment than project B. Project A offers a 100% return on investment in 10 years, while project B offers a 50% return on investment in 5 years.

• Option C: Should invest in project A.

This option is correct because project A offers a better return on investment than project B. Project A offers a 100% return on investment in 10 years, while project B offers a 50% return on investment in 5 years.

• Option D: Should invest in project B.

This option is not correct because project A offers a better return on investment than project B. Project A offers a 100% return on investment in 10 years, while project B offers a 50% return on investment in 5 years.