9. Annual cash inflows from two competing investment opportunities are given below.

YEAR INVESTMENT A INVESTMENT B

1 $10,000 $ 20,000

2 15,000 10,000

3 20,000 35,000

4 45,000 25,000

Total Cash Inflows $90,000 $90,000

Each investment opportunity will require the same initial investment, $65,000.

The firms required rate of return on investments is 10%.

Required: (10 pts.)

1. Compute the Net Present Value of each investment.

(2) Which investment should be made, and explain why.

[Indicate which Table you used and show all your work]