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ABC Company is evaluating two investment options: Option A requires an initial investment of $100,000 and offers cash inflows of $20,000 annually for 6 years.

ABC Company is evaluating two investment options:

Option A requires an initial investment of $100,000 and offers cash inflows of $20,000 annually for 6 years.

Option B requires an initial investment of $150,000 and offers cash inflows of $25,000 annually for 8 years.

Create a table comparing the net present value (NPV) of both options at discount rates of 8% and 10%.

Investment Option

Initial Investment

Cash Inflows (annually)

Maturity (Years)

Discount Rate (%)

NPV (at 8%)

NPV (at 10%)

Option A

$100,000

$20,000

6

8



Option B

$150,000

$25,000

8

8



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