Annual cash inflows from two competing investment projects are given below: Exercise $14$A$-1($Algo$)$ Basic Present Value Concepts $[$LO$14-7]$

Annual cash inflows from two competing investment projects are given below:

The discount rate is $5\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the present value of the cash inflows for each investment.

Year Investment A Investment B

$1$ $ $7,000$ $ $10,000$

$28,0009,000$

$39,0008,000$

$410,0007,000$

$ $34,000$ $ $34,000$

The discount rate is $5\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the present value of the cash inflows for each investment.