A business has two investment choices. Alternative 1 requires an immediate outlay of $3,300 and offers a return of $15,000 in nine years. Alternative 2 requires an immediate outlay of $4,200 in return for which $600 will be received at the end of every six months for the next nine years. The required rate of return on investment is 16% semi-annually. Compute the net present value of each alternative and determine which investment should be accepted or rejected according to the net present value criterion.

what is the net present value of Alternative 1?

(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)

What is the net present value of Alternative 2?

(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)

Part 3what is the preferred alternative?

USE BA 2 PLUS FINANCIAL CALCULATOR