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A company has two investment possibilities, with the following cash inflows: If the firm can earn 6 percent in other investments, what is the present
A company has two investment possibilities, with the following cash inflows: If the firm can earn 6 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 nvestment? The present value of investment A is the cost. The present value of investment B is the cost. An investment will generate $8,000 a year for 25 years. If you can earn 10 percent on your funds and the investment costs $80,000, calculate the present value of investment. Use Appendix D to answer the question. Round your answer to the nearest dollar. $ Should you buy it? Calculate the present value of investment, if you could earn only 7 percent. Use Appendix D to answer the question. Round your answer to the nearest dollar. $ Should you buy it in this case
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