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Consider the following two cash flows: Year Cash Flow A Cash Flow B 1 $1,000 $3,000 2 5,000 4,000 3 5,000 5,000 4 4,000 5,000

Consider the following two cash flows:

Year

Cash Flow "A"

Cash Flow "B"

1

$1,000

$3,000

2

5,000

4,000

3

5,000

5,000

4

4,000

5,000

5

3,000

1,000

Total

$18,000

$18,000

Required:

Question A: Is there a difference in the present value of the preceding cash flows?

Question B: If there is a difference, which investment decision has the greatest present value?

(Note: Not provided with an interest rate) Let's assume the rate to be 10%

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