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Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B @1234 The discount rate is 9%.

Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B @1234 The discount rate is 9%. $ 5,000 6,000 7,000 8,000 $ 26,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Year 1 2 3 4 Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. $ $ $ 8,000 7,000 6,000 5,000 $26,000 Present Value of Cash Flows Investment A Investment B 4,550 4,550 $ 0 Prev 1 of 2 Next
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Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 5,000 $ 8,000 2 6,000 7,000 3 7,000 6,000 4 8,000 $ 26,000 5,000 $26,000 The discount rate is 9%. Click here to view Exhibit 128-1 and Exhibit 12B-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. Present Value of Cash Flows Investment A Investment B Year 1 $ 2 3 4,550 4 $ 4,550 $ 0 Prev 1 of 2 Next>

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