Question
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A 1 $9,000 Investment B $ 12,000 2
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A 1 $9,000 Investment B $ 12,000 2 10,000 11,000 3 11,000 10,000 12,000 9,000 $ 42,000 $ 42,000 The discount rate is 7%. Click here to view Exhibit 12B-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. Present Value of Year Cash Flows for Investment A Present Value of Cash Flows for Investment B 1 2 3 4
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