Mutually Exclusive Alternatives. The Jason Company has \(\$ 50,000\) to invest in either of two alternatives. Investment I yields \(\$ 12,000\) a year in aftertax annual cash flows for ten years. Investment II yields a one-time, aftertax return of \(\$ 180,000\) at the end of ten years.

\section*{Required:}

1. Using Tables 1 and 2 in Chapter 12, pages 535 and 536, find the PV for all interest columns from 4 percent through 25 percent, using the 10 -year row.

2. Which investment is preferred over what ranges of minimum RORs?

3. At approximately what ROR would you reject Investment I and Investment II?