Question
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 | $ | 9,000 | $ | 12,000 |
| Year 2 | 10,000 | 11,000 | ||
| Year 3 | 11,000 | 10,000 | ||
| Year 4 | 12,000 | 9,000 | ||
| Total | $ | 42,000 | $ | 42,000 |
| Click here to view Exhibit 11B-1, http://lectures.mhhe.com/connect/0078025419/Exhibit/Exhibit%2011B-1.JPG to determine the appropriate discount factor(s) using tables. |
| Required: |
| Compute the present value of the cash inflows for each investment using a 6% discount rate. (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) |
| Present Value of Cash Flows | |
| Investment X | $ |
| Investment Y | $ |
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Environmental Health And Safety Audits A Compendium Of Thoughts And Trends
Authors: Lawrence B. Cahill
2nd Edition
1598889737, 978-1598889734
