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A company has two investment opportunities. Alternative 1 (Alt. 1) pays $9.000 (inflow) two years from now, and $28,000 (inflow) four years from now. Alternative
A company has two investment opportunities. Alternative 1 (Alt. 1) pays $9.000 (inflow) two years from now, and $28,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $7,500 (inflow) at the end of every year for five years. Interest is 8.4% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. TWO YEARS FOUR YEARS FIVE YEARS P/Y CNY N I WY % 19 % PV $ $ PMT $ $ $ FV IS $ $ $ Write the Discounted Cash Flow (DCF) for Alt. 1 and Alt 2 to the nearest dollan. Alt. 1 = $ Alt 2=$
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