Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,100 and will produce cash flows as follows:

End of Year	Investment
	A	B
1	$8,100	$0
2	8,100	0
3	8,100	24,000

The present value factors of $1 each year at15% are

1	0.8696
2	0.7561
3	0.6575

The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: