Question
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 7,000 $ 10,000 2
Annual cash inflows that will arise from two competing investment projects are given below:
| Year | Investment A | Investment B |
|---|---|---|
| 1 | $ 7,000 | $ 10,000 |
| 2 | 8,000 | 9,000 |
| 3 | 9,000 | 8,000 |
| 4 | 10,000 | 7,000 |
| $ 34,000 | $ 34,000 |
The discount rate is 13%.
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.
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Auditing Leadership The Professional And Leadership Skills You Need
Authors: Brian D. Kush
1st Edition
0470450010, 9780470450017
