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Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 3,000 12,000 2 6,000 9,000

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

Year Investment A Investment B
1 3,000 12,000
2 6,000 9,000
3 9,000 6,000
4 12,000 3,000

Total $30,000 $30,000

The discount rate is 18%.

Click here to view Exhibit 11B-1 and Exhibit 11B-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. (Use the appropriate table to determine the discount factor(s).)

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