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Annual cash inflows from two competing investment projects are given below: Year Investment A $ 4,000 5,000 6,000 7,000 $ 22, 000 Investment B $
Annual cash inflows from two competing investment projects are given below:
Year
Investment A
$ 4,000
5,000
6,000
7,000
$ 22, 000
Investment B
$ 7,000
6,000
5,000
4,000
$ 22,000
The discount rate is 10%.
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.
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