Question
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
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
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