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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 $6,000 2 4,000

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

Year Investment A Investment B
1 $ 3,000 $6,000
2 4,000 5,000
3 5,000 4,000
4 6,000 3,000

Total $18,000 $18,000

The discount rate is 11%.

Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar.

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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