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Exercise 12A-1 (Algo) Basic Present Value Concepts [LO12-7] Annual cash inflows that will arise from two competing investment projects are given below: Year 1
Exercise 12A-1 (Algo) Basic Present Value Concepts [LO12-7] Annual cash inflows that will arise from two competing investment projects are given below: Year 1 2 Investment A $ 7,000 8,000 Investment B $ 10,000 9,000 3 4 9,000 10,000 8,000 7,000 $ 34,000 $ 34,000 The discount rate is 7%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Present Value of Year Cash Flows for Present Value of Cash Flows for 1 2 3 Investment A Investment B
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