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Alfarsi industries uses the net present value method to make investment decisions and requires a 15% annual retum on at mvestments. The company is
Alfarsi industries uses the net present value method to make investment decisions and requires a 15% annual retum on at mvestments. The company is considering two feet acht $14,000 and will produce cash flows as follows Investment End of Year A 1 $10,000 50 2 3 10,000 10,000 30,000 The present value factors of $1 each year at 15% are: 0.6575 The present value of an annuity of $1 for 3 years at % is 2.2832 The net present value pounded to the nearest whoof vestment A 1 2 0.8696 0.7561 3 Multiple Choice O $19.725 O 04.000 $16.000
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