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Evergreen Company has two investment opportunities. Both investments cost $5,000 and provide the same total future cash inflows. The cash receipt schedule for each investment
Evergreen Company has two investment opportunities. Both investments cost $5,000 and provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I $ 1,600 Investment II $ 4,320 Period 1 Period 2 1,600 2,960 Period 3 2,960 5,440 2,960 1,360 Period 4 Total $11,600 $11,600 Select the correct statement. Multiple Choice Time value of money techniques are not useful for comparing these investments. Evergreen should choose Investment Il because it generates more immediate cash inflows. Evergreen should choose Investment I because of the time value of money. Evergreen should be indifferent between the two investments because they provide the same total cash inflows
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