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Consider the following opportunities: Opportunity 1 requires a $4,750 cash payment now (Year 0) but will result in $18,800 cash received In Year 5.
Consider the following opportunities: Opportunity 1 requires a $4,750 cash payment now (Year 0) but will result in $18,800 cash received In Year 5. Opportunity 2 requires no cash outlay and results in $5,500 cash received in years 3 and 5. Use Appendix A and Appendix B. Required: a. Use a 6 percent discount rate and determine whether Opportunity 1 or Opportunity 2 results in a greater NPV. b. Use a 10 percent discount rate and determine whether Opportunity 1 or Opportunity 2 results in a greater NPV. Complete this question by entering your answers in the tabs below. Required A Required B Use a 6 percent discount rate and determine whether Opportunity 1 or Opportunity 2 results in a greater NPV. Note: Round discount factor(s) to 3 decimal places, and do not round your other intermediate calculations. Round your final answers to the nearest whole dollar amount. Opportunity 1 Opportunity 2 Greater NPV < Required A Required B >
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