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 $14,700 and will produce cash flows as follows:

End of Year	Investment
	A	B
1	$9,300	$0
2	9,300	0
3	9,300	27,900

The present value factors of $1 each year at 15% are:

1	0.8696
2	0.7561
3	0.6575

The present value of an annuity of $1 for 3 years at 15% is 2.2832

The net present value of Investment A is:

$18,344.

$(14,700).

$13,200.

$(21,234).

$6,534.