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Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is
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 invester Each me an $15,800 and will produce cash flows as follows: Investment End of Year 8 1 2 $ 8,800 $ 0 8,800 3 8,880 26,400 The present value factors of $1 each year at 15% 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 B Mumpie Choice $1558
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