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Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 6,000 $ 9,000 2
Annual cash inflows that will arise from two competing investment projects are given below:
| Year | Investment A | Investment B | ||
| 1 | $ | 6,000 | $ | 9,000 |
| 2 | 7,000 | 8,000 | ||
| 3 | 8,000 | 7,000 | ||
| 4 | 9,000 | 6,000 | ||
| $ | 30,000 | $ | 30,000 | |
The discount rate is 13%.
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment.
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