A company has two investment opportunities. Alternative 1 (Alt. 1) pays $9,000 (inflow) two years from now, and $16,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $7,000 (inflow) at the end of every year for five years. Interest is 6.06% compounded annually. Which is the preferable alternative?

Round the values for PV to the nearest cent.

TWO YEARSFOUR YEARSFIVE YEARSP/Y C/Y N I/Y%%%PV$$$PMT$$$FV$$$

Write the Discounted Cash Flow (DCF) for Alt. 1 and Alt. 2.

Enter positive values for Alt. 1, and Alt. 2, rounded to the nearest dollar.

Alt. 1 = $ Alt. 2 = $ Choice Select an answer Alt. 1 Either Alt.1 or Alt. 2 Alt. 2