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A company has two investment possibilities, with the following cash inflows Year 1 Year 2 Year 3 $1,3001,600 1,900 Investment $1,200 1,200 1,200 If the
A company has two investment possibilities, with the following cash inflows Year 1 Year 2 Year 3 $1,3001,600 1,900 Investment $1,200 1,200 1,200 If the firm can eam 8 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. PV(investment A):$ PV(Investment Bj: $ If each investment costs $4,000, is the present value of each investment rater than the cost of the investment? The present value of investment A eltthe cost. The present value of investment B iselectthe cost
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