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Annual cash inflows that will arise from two competing investment projects are given below: The discount rate is 9%. Compute the present value of the

Annual cash inflows that will arise from two competing investment projects are given below:

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The discount rate is 9%. Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment.

Year Investment A Investment B $ 5,000 6,000 7,000 8,000 $ 26,000 $ 8,000 7,000 6,000 5,000 $26,000

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