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Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on al investments. The company is considering
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on al investments. The company is considering two different investments. Each require an initial investment of $15.400 and will produce cash flows as follows: The present value factors of $1 each year at 15% are: The present value of an annuity of $1 for 3 years at 15% is 22832 The net present value of Irvestment B is: 51,169 sin569] $9.800 541769 50,444
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