Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. (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 14% 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 $1 Investment opportunity should be chosen because the present value of cash flows is than the present value of investment opportunity Present Value of $1 7% 8% Periods 4% 5% 6% 10% 12% 14% 16% Present Value of Annuity of $1 0.926 0.857 0.877 0.769 0.925 0.864 0.794 0.675 Present Value of Ordinary Annuity of $1 6% 7% 8% 10% 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 Periods 4% 5% 14% 16% 0.404 Data Table 0.877 1.647 2.322 2.914 3.433 3.889 4.288 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 Period 1 0.962 0.952 Period 2 0.907 Period 3 0.889 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 130.601 0.530 Period 14 0.577 0.505 Period 15 0.555 0.481 Period 16 0.534 Period 17 0.513 0.436 Period 18 0.494 0.416 Period 19 0.475 0.396 Period 200.456 0.377 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 0.943 0.890 0.840 0.792 0.747 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 0.361 0.322 0.287 0.257 0.229 0.205 0.183 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 Investment A Investment B 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 5.971 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 4.639 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 Year 1 $ Period 1 0.962 0.952 0.943 0.935 Period 2 1.886 1.859 1.833 1.808 Period 3 2.775 2.723 2.673 2.624 Period 4 3.630 3.546 3.465 3.387 Period 5 4.452 4.329 4.212 4.100 Period 6 5.242 5.076 4.917 4.767 Period 7 6.002 5.786 5.582 5.389 Period 8 6.733 6.463 6.210 Period 9 7.435 7.108 6.802 6.515 Period 10 8.111 7.722 7.360 7.024 Period 11 8.760 8.306 7.887 499 Period 129.385 8.863 8.384 7.943 Period 139.986 9.394 8.853 8.358 Period 14 10.563 9.899 9.295 8.745 Period 15 | 11.118 10.380 9.712 9.108 Period 16 11.652 10.838 10.106 9.447 Period 17 12.166 11.27410.477 9.763 Period 18 12.659 11.690 10.828 10.059 Period 19 13.134 12.085 11.158 10.336 Period 20 13.590 12.462 11.470 10.594 5,000 $ 0.926 1.783 2.577 3.312 3.993 4.623 5.20G 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 0.315 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 .824 8.022 8.201 8.365 8.514 Year 2 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 12,000 12,000 12.000 0.458 12,000 19,000 0.163 Year 3 0.292 0.270 0.250 0.232 0.215 0.146 0.130 0.116 0.104 36,000 $ 36,000 Total 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 5.575 Print Done Print Done next question 5.668 5.749 5.818 5.877 5.929