Annual cash inflows from two competing investment opportunities are given. Each investment opportunity will require the same

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Annual cash inflows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment.

Investment Year B A $10,000 13,000 $13,000 $13,000 13,000 2 3 16,000 $39,000 $39,000


Requirement

1. Assuming a 12% interest rate, which investment opportunity would you choose?

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Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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