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Evergreen Company has two investment opportunities. Both investments cost $5,000 and will provide the same total future cash inflows. The cash receipt schedule for each
Evergreen Company has two investment opportunities. Both investments cost $5,000 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Period 1 Period 2 Period 3 Period 4 Total Investment I $ 1,400 1,400 2,640 4,960 $10,400 Investment II $ 3,880 2,640 2,640 1,240 $10,400 Select the correct statement. Multiple Choice Evergreen should choose Investment I because of the time value of money Time value of money techniques are not useful for comparing these investments. Evergreen should choose Investment I because it generates more immediate cash inflows. O Evergreen should be indifferent between the two investments because they provide the same total cash inflows
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