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Annual cash inflows from two competing investment projects are given below: Year Investment A Investment B 1 $ 7,000 $ 10,000 2 8,000 9,000 3

Annual cash inflows from two competing investment projects are given below: Year Investment A Investment B 1 $ 7,000 $ 10,000 2 8,000 9,000 3 9,000 8,000 4 10,000 7,000 $ 34,000 $ 34,000 The discount rate is 7%.

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

Year Present Value of Cash Flows Investment A Investment B 1 2 3 4 $0 $0

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