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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 $15,600 and will produce cash flows as follows: End of Year 1 Investment A B 58,600 $ @ 3,600 8,600 25,300 3 The present value factors of $1 each year at 15% are: 2 0.3696 0.7561 0.6575 3 The present value of an annuity of 1 for 3 years at 15is 2.2832 The net present value of investment AS Multiplo Choice $16.964 bang $05,600 $10.200 9.636 $4.036
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