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E12.17 In January 2010 Chin Imports generated the following data about investments A and B. which the company is considering. Chin's cost of capital is

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E12.17 In January 2010 Chin Imports generated the following data about investments A and B. which the company is considering. Chin's cost of capital is 12% and its tax rate is 20%. Investment B Investment A $104.000 26,000 $300,000 Initial Cost Annual Depreciation Net Pretax cash inflows 50.000 2010 38,000 48,000 46,000 2011 2012 2013 2014 2015 42,000 34,000 36,000 48,000 51,000 53,000 52,000 What is the net present value of each investment? Would you recommend that Chin purchase one, both or neither investment? Why

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