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A firm must choose between two investment alternatives, each costing $90,000. The first alternative generates $35,000 a year for four years. The second pays one
A firm must choose between two investment alternatives, each costing $90,000. The first alternative generates $35,000 a year for four years. The second pays one large lump sum of $152,800 at the end of the fourth year. If the firm can raise the required funds to make the investment at an annual cost of 9 percent, what are the present values of two investment alternatives? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. PV (First alternative): $ PV(Second alternative): $ Which alternative should be preferred? The -Select- v alternative should be preferred
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