Question
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
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 |
| Total | $30,000 | $30,000 |
|
| ||
The discount rate is 11%.
Click here to view Exhibit 8B-1 and Exhibit 8B-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. (Round discount factor(s) to 3 decimal places.)
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Culture Audits Supporting Organizational Success Information Line
Authors: Cynthia Solomon
1st Edition
156286386X, 978-1562863869
