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Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Compute the present value


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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 20% discount rate. Investment X $500 1. Year Investment Y 1 2,000 2 1,000 1,500 3 1,500 1,000 4 2,000 5,00 Total $5,000 $5,000 (Total: 10 marks; 5 marks for X and Y each) Amount of Cash Flows Y Year(s) X 1 2 3 4 Present Value of Cash Flows X Y

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