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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 considering

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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 considering two different investments. Each require an initial investment of $14,900 and will produce cash flows as follows: End of Year 1 2 3 Investment B $9,100 $ 9,100 9,100 27,300 The present value factors of $t each year at 15% are: 1 2 3 0.8696 0.7561 8.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: $(20,778) $12,400 O $114,900). $5.877. O $17.950

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