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A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,400 1,600 1,900 B $1,400 1,400
A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,400 1,600 1,900 B $1,400 1,400 1,400 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 -Select- the cost. The present value of investment B is -Select- the cost
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