CYK firm intends to invest $4 million in a sisal project with expected annual income flows of $200,000 for the next 6 years. Alternatively, they could buy a government bond with a face value of $4 million and a coupon rate at 8 percent, which matches the market rate of interest. What advice should the management consider?
a) Invest in the sisal project due to higher expected returns.
b) Invest in the government bond for guaranteed returns.
c) Invest in both options to diversify risk.
d) Seek further financial analysis before making a decision.
