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A company has two investment possibilities, with the following cash inflows: Investment Year 1 : a)$1,300 b)$1,200 Year 2 : a)1,700 b) 1,200 Yaer 3:
A company has two investment possibilities, with the following cash inflows: Investment 
appendix B 
appendix D
Interest Factors for the Present Value of One Dollar Interest Factors for the Present Value of an Annuity of One Dollar Year 1 : a)$1,300 b)$1,200
Year 2 : a)1,700 b) 1,200
Yaer 3: a) 2,100 b) 1,200.
If the firm can earn 7 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.
PV (Investment A): $....?
PV (Investment B): $...?
If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is( less than/ greather than) the cost. The present value of investment B (less than/greather than) the cost.
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The Financial Crisis Implications For Research And Teaching
Authors: Ted Azarmi, Wolfgang Amann
1st Edition
3319205870, 978-3319205878
