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9:55 PM Thu Dec 6 27 Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on

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9:55 PM Thu Dec 6 27 Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,100 and will produce cash flows as follows: Investment End of Year $9,900$0 9,900 9,900 29,700 The present value factors of $1 each year at 15% are: 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is O $19,528. O $(14,100). O $15,600 O $(22.604) O $8,504. Poe Company is considering the purchase of new equipment costing $85,000. The projected annual cash inflows are $35,200, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine. Periods Present Value of 1 at 10% | Present Value of an Annuity of 1 at 10% 0.9091 0.8264 07513 06830 0.9091 1.7355 2.4869 3.1699 O $44.220 O $126,580). O $26,580. o $(13.951). $13.951

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