Question
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 4,000 $7,000 2 5,000
| Annual cash inflows that will arise from two competing investment projects are given below: |
| Year | Investment A | Investment B |
| 1 | $ 4,000 | $7,000 |
| 2 | 5,000 | 6,000 |
| 3 | 6,000 | 5,000 |
| 4 | 7,000 | 4,000 |
|
|
| |
| Total | $22,000 | $22,000 |
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| |
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The discount rate is 10%.
| Required: |
| Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. (Use Microsoft Excel to calculate present values. Do not round intermediate calculations.) |
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Process Audits And 6 Sigma Excellence To Mitigate Risk And Improve Business Performance
Authors: Mr Indulis Laimonis Svikis
1st Edition
B09M5FPYR4, 979-8769768996
