A company has 2 investment opportunities with the following cash flows:

Year 1 Year 2 Year 3

Investment A $1,500 $1,250 $1,800

Investment B $1,500 $1,500 $1,500

If a company can earn 5% in other investments, what is the present value of investments A and B?

Investment A = $4,084.50 Investment B = $4,117.20

Investment A = $4,084.50 Investment B = $4,084.50

Investment A = $4,117.20 Investment B = $4,084.50

Investment A = $4,275 Investment B = $3,858.18