Suppose there are real geese that lay golden eggs and each egg can be sold for P10.00 each. On the first laying year, the geese uniformly lay 10 eggs, generating total earning of P100.00 (10 eggs at P10.00 each). These geese do not need to eat. There are 3 geese for sale and you won the raffle for the first pick.
*Goose 1 is priced at P1, 000.oo (equivalent to 10x total earning of P100.oo
Goose 2 at P1500 (15x earning)
Goose 3 is offered at P2, 000.00 (20x earning)
It is confirmed that the geese will increased their golden eggs production after 1 year of uniformly laying 10 eggs
*Goose 1 will increased golden eggs production by 5% every year
Goose 2 by 15%
Goose 3 by 20%
After 10 years, the geese stop laying golden eggs and become ordinary geese. This for 10 years...
*Goose 1 will lay a total of 126 golden eggs.
Goose 2 will have 203 eggs.
Goose 3 will produce 333 eggs.
Which will you buy?
