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
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 6%.
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.
Present Value of Cash Flows
Year Investment A Investment B
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Fraud Examination
Authors: W. Steve Albrecht, Conan C. Albrecht, Chad O. Albrecht, Mark F. Zimbelman
3rd edition
324560842, 978-0324560848
