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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 $15.400 and will produce cash flows as follows: End of Year 1 2 3 Investment $8,400 $ 0 8,400 0 8,400 25,200 The present value factors of $1 each year at 15% are: 1 2 3 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment Bis: Multiple Choice $1,169 O $(16,569) $9,800 $41,769 $6,444

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