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A firm has the following investment alternatives: Cash Inflows Year B 1 $ 3,600 2 $1,100 1,100 1,100 3 $ 4,562 Each investment costs $3,000;
A firm has the following investment alternatives: Cash Inflows Year B 1 $ 3,600 2 $1,100 1,100 1,100 3 $ 4,562 Each investment costs $3,000; investments B and C are mutually exclusive, and the firm's cost of capital is 8 percent. Use Appendix A, Appendix B and Appendix D to answe the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. a. What is the net present value of each investment? Use a minus sign to enter a negative values, if any. Round your answers to the nearest dollar. A: $ B: $ C: $ A firm has the following investment alternatives: Cash Inflows Year B 1 $ 3,600 2 $1,100 1,100 1,100 3 $ 4,562 Each investment costs $3,000; investments B and C are mutually exclusive, and the firm's cost of capital is 8 percent. Use Appendix A, Appendix B and Appendix D to answe the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. a. What is the net present value of each investment? Use a minus sign to enter a negative values, if any. Round your answers to the nearest dollar. A: $ B: $ C: $
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