Question
Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Compute the present value of
Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Compute the present value of the cash inflows for each investment using a 14% discount rate. (PLEASE ROUND EACH DISCOUNTED CASH FLOW TO THE NEAREST DOLLAR)
| Year | Investment X | Investment Y |
| 1 | $4,500 | 6,000 |
| 2 | 5,000 | 5,500 |
| 3 | 5,500 | 5,000 |
| 4 | 6,000 | 4,5,00 |
| Total | $21,000 | $21,000 |
- (Total: 10 marks; 5 marks for X and Y each)
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Front Office Operations And Night Audit Workbook
Authors: Patrick J. Moreo, Gail Sammons, Jim Dougan, James Dougan
1st Edition
0133987698, 978-0133987690
