Check My Work (3 remaining) eBook Problem 7-08 A company has two investment possibilities, with the following cash inflows: Year 3 Year 1 Year 2 Investment 1,800 2,200 $1,600 A 1,300 1,300 $1,300 B If the firm can earn 8 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar PV(investment A): $ PVtnvestment B): If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is -Select- The present value of investment B is -Select- the cost. the cost. Check My Work (3 remaining) Time Period (e.g. year) 3% 4% 18% 5% 6% 7% 9 % 15% 16% 20% 24% 8 % 10% 14% 28% 962 957 943 935 873 877 870 867 847 833 806 925 889 890 743 694 .579 888 871 853 837 820 820 780 610 478 116 059 038 016 002 742 552 412 308 131 075 033 020 001 007 R E6 Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g. 8 % 10 % 12 % 16 % 1% 2% 3% 4% year) 5% 6% 7% 14% 18% 20% 24 % 28% 32% 36% 9% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 4 5.795 5.601 5.417 5.242 5.076 4917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7.360 7024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 6 7 10 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.6831 11 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 12 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.799 14 15 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 16 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 17 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 18 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 19 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8514 7469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 20 25 22.023 19.523 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5467 4.948 4.147 3.564 3.122 2.776 30 25.808 22937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4979 4.160 3.569 3.124 2.778 -2m t un
