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Annual cash inflows from two competing investment projects are given below: Year Investment B 1234 Investment A $ 2,000 3,000 4,000 $ 5,000 4,000
Annual cash inflows from two competing investment projects are given below: Year Investment B 1234 Investment A $ 2,000 3,000 4,000 $ 5,000 4,000 3,000 5,000 2,000 $ 14,000 $ 14,000 The discount rate is 12%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Present Value of Cash Flows Year Investment A Investment B 1 2 3 4
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