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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's considering two

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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's considering two different investments. Each require an initial Investment of $15,500 and will produce cash flows as follows: Inventment End of Yen 1 2 3 0 $8,500 8,500 8,500 25,500 The present value factors of $t each year at 15% are: 1 2 3 0.8696 0.7561 0.6575 The present value of an annulty of $1 for 3 years at 15% is 2.2832 The net present value of Investments: Multiple Choice $10.000

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