Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. 5 Click the icon to view the competing investment opportunities.) (Click the icon to view the Present Value of $1 table.) 3 (Click the icon to view the Present Value of Annuity of $1 table.) Requirement 1. Assuming a 16% interest rate, which investment opportunity would you choose? Begin by computing the present value of each investment opportunity. (Assume that the annual cash flows occur at the end of each year. If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round intermediary computations and your final answer to the nearest whole dollar.) The present value of investment opportunity A is The present value of investment opportunity B is Present Value of Annuity of $1 Investment opportunity V should be chosen because the present value of cash flows is V than the present value of investment opportunity Present Value of Ordinary Annuity of $1 6% 7% 8% 10% 12% Periods 4% 5% 14% 16% Present Value of $1 Data Table Present Value of $1 7% 8% 3.630 3.465 Periods 4% 5% 6% 10% 12% 14% 16% Investment A Investment B 0.943 0.890 0.840 0.792 $ 14,000 $ 10,000 Year 1 Year 2 0.747 12,000 4,000 10,000 10.000 Period 1 0.962 0.952 Period 2 0.925 0.907 Period 3 0.889 0.864 Period 4 0.855 0.823 Period 5 0.822 0.784 Period 6 0.790 0.746 Period 7 0.760 0.711 Period 8 0.731 0.677 Period 9 0.703 0.645 Period 100.676 0.614 Period 110.650 0.585 Period 12 0.625 0.557 Period 13 0.601 0.530 Period 14 0.577 0.505 Period 150.555 0.48 Period 16 0.534 0.458 Period 17 0.513 0.436 Period 18 0.494 0.416 Period 19 0.475 0.396 Period 20 0.456 0.377 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 Period 1 0.962 0.952 Period 2 1.886 1.859 Period 3 2.775 2.723 Period 4 3.546 Period 5 4.452 4.329 Period 6 5.242 5.076 Period 7 6.002 5.786 Period 8 6.733 6.463 Period 9 7.435 7.108 Period 10 8.111 7.722 Period 11 8.760 8.306 Period 129.385 8.863 Period 13 9.986 9.394 Period 14 10.563 9.899 Period 15 11.118 10.380 Period 16 11.652 10.838 Period 17 12.166 11.274 Period 18 12.659 11.690 Period 19 13.134 12.085 Period 20 13.590 12.462 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 0.258 0.943 0.935 1.833 1.808 2.673 2.624 3.387 4.212 4.100 4.917 4.767 5.582 5.389 6.210 5.971 6.802 6.515 7.360 7.024 7.887 7.499 8.384 7.943 8.853 8.358 9.295 8.745 9.712 9.108 10.106 9.447 10.4779.763 10.828 10.059 11.158 10.336 11.470 10.594 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 Year 3 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 8,851 9.122 9.372 9.604 9.818 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 $ 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8,022 8.201 8.365 8.514 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 30,000 $ 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7 120 7.250 7.366 7.469 30,000 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.199 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 Total 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.60 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 5.929 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 0.394 0.371 0.350 0.331 0.312 Print Done 0.187 0.160 0.140 0.123 0.108 0.095 Print Done Done Entel 0.083 0.215 0.073 0.051