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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
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 $,300 and will produce cash flows as folows: End of Year Investment A B $9,700 $ 3 9 ,780 29,180 The present value factors of teach year at 15% are 1 0 .8696 0.7561 8.6575 The net present value of investment o $14,800. o $9,731. o $48,233. o EE8'v$ o EE1615
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