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Annual cash inflows that will arise from two competing investment projects are given below: Year 1 2 3 4 Investment A $ 1,000 2,000 3,000
Annual cash inflows that will arise from two competing investment projects are given below: Year 1 2 3 4 Investment A $ 1,000 2,000 3,000 4,000 $ 10,000 Investment B $ 4,000 3,000 2,000 1,000 $ 10,000 The discount rate is 9%. Click here to view Exhibit 13B-1 and Exhibit 13B-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
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