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Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Investment X Investment Y Year
Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. |
Investment X | Investment Y | |||
Year 1 | $ | 1,000 | $ | 4,000 |
Year 2 | 2,000 | 3,000 | ||
Year 3 | 3,000 | 2,000 | ||
Year 4 | 4,000 | 1,000 | ||
Total | $ | 10,000 | $ | 10,000 |
Required: |
Compute the present value of the cash inflows for each investment using a 9% discount rate. (Round final answers to the nearest dollar amount.) |
Present Value of Cash Flows | |
Investment X | $ |
Investment Y | $ |
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