A company has two investment possibilities, with the following cash inflows:

Investment	Year 1	Year 2	Year 3
A	$1,600	1,800	2,200
B	$1,300	1,300	1,300

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 or greater than) Item 3 the cost. The present value of investment B is (less than or greater than) Item 4 the cost.