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A company has two investment opportunities. Alternative 1 (Alt. 1) pays $11,000 (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 $11,000 (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 6.84% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. TWO YEARS FOUR YEARS FIVE YEARS P/Y C/Y N 1/Y % % % PV $ $ $ PMT $ LA $ LA FV $ $ Write the Discounted Cash Flow (DCF) for Alt. 1 and Alt 2 to the nearest dollar. Alt. 1 = $ Alt. 2 = $ Choice Select an answer V
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