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Allarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering
Allarsi 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 $15,000 and will produce cash flows as follows: End of 1 2 0 $8.000 8.000 3,000 24,000 Cick here to view Exhibit 3-1 and Exh 2. to determine the appropriate discount factor using table Which investment should Alfarsi choose Both investments are acceptable, but A should be selected because it has the greater net presente O Only investment is acceptable Only Investment A is acceptable Both investments are acceptable, but should be selected because it has the greater net present value
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